Facts:

Drastic Company operates a business selling fishing boats. The company uses accrual accounting and issues monthly financial statements. During April 2020, the company purchased two lots (Lot A and Lot B) and a large warehouse to store fishing boats. In April 2020, Drastic Company's records reveal the following information.

Lot A

Lot A will be used as a parking lot for customers. Lot A had an old rusted tool shed that was removed before paving the lot for the parking lot and installing outdoor lighting to illuminate the new parking lot.

Lot B

Drastic Company used lot B as the site of its new corporate office building. The company hired an architect to design the new office building.

Here is a summary of Drastic Company's April 2020 cash payments.

1. Paid $55,000 for the large warehouse to store fishing boats.

2. Paid $30,000 for Lot A (includes $5,000 cost for the rusted tool shed)

3. Paid $1,000 to remove the rusted tool shed from lot A

4. Paid $2,000 to pave lot A for the parking lot

5. Paid $3,000 for outdoor lighting to illuminate the parking lot

6. Paid $10,000 for lot B

7. Paid $150,000 to a building contractor to construct a new corporate office on lot B

8. Paid $20,000 to an architect firm to design a new corporate office building on lot B

9. Paid $25,000 property taxes after acquiring lots A and B

10. Paid $7500 for a new computer system to track the sale of fishing boats

11. Paid $100 to repair several roof shingles on of new office building after a storm damaged the new building

12. Paid $1,500 to enhance the existing computer system to expand the capabilities of the existing computer system.

For each of the twelve items listed above, indicate

(a)whether the cost should be classified as a capitalizable cost or a revenue expenditure.

(b) If an item is a capitalizable cost, indicate whether the cost is capitalizable as : Land, Land Improvement, Building or Equipment.

Here is an example:

Paid $30,000 for a new delivery truck.

a. Capitalizable cost

b. Equipment