EXERCISES Ex. 10-131-Plant asset accounting. During 2012 and 2013, Sawyer 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 blanks provided by using the following codes: O = Overstate; U = Understate; NE = No Effect If no error was made, write NE in each of the four columns. 2012 2013 Net Book Net Book Value of Value of Plant 2012 Plant 2013 Assets at Net Assets at Net Transaction 12/31/12 Income 12/31/13 Income 1. The cost of installing a new computer system in 2012 was not recorded in 2012. It was charged to expense in 2013. 2. In 2013 clerical workers were trained to use the new computer system at a cost of $15,000, which was erroneously capital-ized. The cost is to be written off over the expected life of the new computer system. 3. A major overhaul of factory machinery in 2012, which extended its useful life by 5 years, was charged to accumulated depreciation in 2012. 4. Interest cost qualifying for capitalization in 2012 was charged to interest expense in 2012. 5. In 2012 land was bought for an employee parking lot. The $2,000 title search fee was charged to expense in 2012