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AP8-1 (Capitalizing costs related to capital assets) C & M Securities made several expenditures during the current fiscal year, including the following: Amount Description of Expenditure 150,000 Acquisition of a piece of land to be used as a building site Demolition of a small building on the land, to make way for the new building Levelling of the land to prepare it for construction of the new building Construction of the new building Paving of a parking lot beside the building Addition of decorative landscaping around the building (such as planting flowers and ornamental shrubs) Purchase of a new piece of equipment Sales taxes on the new equipment Installation of the new equipment Testing and adjustment of the new equipment prior to its use Minor repairs to some old equipment Major overhaul of an old piece of equipment, extending its useful life by three years Routine maintenance of equipment Replacement of windows broken by disgruntled employees during a labour dispute 3,000 7,500 290,000 12,000 6,000 80,000 6,000 3,000 1,500 1,000 7,000 1,200 2,000 10 12. 13 14 Required a. For each of the items listed above, indicate whether the cost should be debited to land, buildings, equipment, land improvements, or an expense account. b. For each item that was expensed, explain why it was not appropriate to add the amount to an asset