COST CLASSIFICATION.

Exercise .Indicate under which column cost incurred should be classified. Put an x mark.

Cost incurred Land Land Improvement Current PeriodBuildingEquipment

Expense

1. Purchase price

of land

2. Cost of survey

3.Sidewalks

4.Clearing cost

5.Cost of landscaping

6.Excavation of foundation

7.Asphalt for parking lot

8.Real property taxes paid

two months after acquisition

9.Insurance and freight on

equipment

10.Shelves, cabinets and

partitions attached to the building

11.Fencing for property

12.Cost to remove structure

from land

13.Proceeds from scrap

removed from structure

14.Invoice price of equipment

15.2% discount on equipment

purchased

16.Building construction cost

17.Interest on loan for

construction

18.Fees paid to technician

for testing cost

19.Installation cost

of new equipment

20.Cost of removing

old equipment/machine