During 20x5 and 20x6, Asp Corporation experienced several transactions involving plant assets. A number of errors were made in recording some of these transactions. For each item listed below, indicate the effect of the error if any) in the attached chart provided by using the indicated codes.

(1) The cost of installing a new computer system in 20x5 was not recorded in 20x5. It was charged to expense in 20x6. It should be capitalized and depreciated over the expected five year life of the computer system.

(2) In 20x6, clerical workers were trained to use the new computer system at a cost of $15,000, which was capitalized in error. The cost is being written off over the expected life of the new computer system.

(3) A major overhaul of factory machinery in 20x5, which extended its useful life by 5 years, was charged to accumulated depreciation in 20x5.

(4) Interest cost qualifying for capitalization in 20x5 was charged to interest expense in 20x5.

(5) In 20x5, land was purchased for an employee parking lot. The $2,000 title search fee was charged to expense in 20x5.

(6) The cost of moving several manufacturing facilities from metropolitan locations to suburban areas in 20x5 was capitalized. The cost was written off over a ten year period beginning in 20x5.

ASP CORPORATION ANALYSIS OF VARIOUS ITEMS EFFECTS ON FINANCIAL STSTEMENTS
Item	20x5 Net book value of plant assets	20x5 Net Income	20x6 Net book value of plant assets	20x6 Net Income
(1)
(2)
(3)
(4)
(5)
(6)
ASP CORPORATION CODES TO INDICATE EFFECTS OF VARIOUS ITENS ON FINANCIAL STATEMENTS
O Overstate U Understate NE No Effect