Chapter 9 1) Which of the following is NOT a characteristic of a plant asset? A) The asset is used in the production of income for the business By The asset is available for sale to customers in the ordinary course of business. The asset has physical for Dj The asset has future usefulness and value. 2) Which of the following would be experised, rather than capitalized? Oil change and lubrication 3) Major engine overhaul Modification for new use ) Addition to storage capacity A company's accountant capitalizes a payment that should be recorded as an expense. Which of the ollowing is TRUE?" :) Net income is overstated 5) Revenues are understated Assets are understated -> Liabilities are overstated. Acme Investment plans to develop a shopping center. In the first quarter, they spent the following amount $100,000 1.200 urchase Land neys and legal foss ind Clearing wall fences around the property stall lighting & signage . DU 2.600 at amount should be recorded as the land cost? $7.200 3101 200 546,200 $106,200