Evaluate the following costs to decide if each is a "capital expenditure," or not. If not, select A) "NO". If a capital expenditure, decide in which account the cost should be recorded: B) Land, C) Land Improvement, D) Building, or E) Equipment. The first item is done as an example. EXAMPLE: Delivery cost of new furniture ANS: E) Equipment

1) Wages paid to guard at office building

C) Land improvement

A) No not a capital expenditure

D) Building

E) Equipment

B) Land

2) Fee for title insurance on land purchase

D) Building

B) Land

C) Land Improvement

E) Equipment

A) Not a capital expenditure

3) Cost of periodic repainting of parking lot

E) Equipment

B) Land

C) Land Improvement

D) Building

A) Not a capital expenditure

4) Cost of building new sidewalks

C) Land improvement

E) Equipment

B) Land

D) Building

A) Not a capital expenditure

5) Interest costs on loan to buy equipment

B) Land

D) Building

C) Land improvement

A) Not a capital expenditure

E) Equipment

6) Computer training class on general commercial software package

A) Not a capital expenditure

E) Equipment

D) Building

C) Land

B) Land

7) Interest cost on loan during construction period for new building

D) Building

A) Not a capital expenditure

B) Land

C) Land improvement

E) Equipment

8) Architects fee for new building

D) Building

A) Not a capital expenditure

E) Equipment

C) Land improvement

B) Land

9) Installation and setup costs on new machinery

C) Land improvement

D) Building

A) Not a capital expenditure

B) Land

E) Equipment

10) Repair of damage to device broken during initial installation

B) Land

D) Building

C) Land improvement

A) Not a capital expenditure

E) Equipment

11) Safety violation fines at construction site

D) Building

E) Equipment

C) Land improvement

B) Land

A) Not a capital expenditure

12) Tap fees for connecting new building to city water system

B) Land

E) Equipment

D) Building A) Not a capital expenditure

C) Land Improvement