Classify expenditure as assets or expenses Jessica and Frank own a guesthouse and spent the following:

1 Purchased a new air conditioning unit ($25 000) and had it installed ($2500).

2 Spent $300 000 constructing an extension to the guesthouse.

3 Spent $18 000 painting the extension.

4 Spent $1500 demolishing an old building that was on the site of the extension.

5 Spent $18 000 painting the old section of the guesthouse.

6 Spent $23 000 replacing carpets with floorboards in the original section of the guesthouse.

7 Spent $13 000 replacing electrical wiring that was faulty in the original section of the guesthouse.

8 Spent $800 on new shutters (the old ones were destroyed by a guest).

For each item, state whether it is an asset or an expense. If an asset, state the amount at which it would be recorded.