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Indicate whether the following costs should be expensed when incurred or capitalized. Also, indicate the correct accounting treatment for items that should be capitalized. (a)
Indicate whether the following costs should be expensed when incurred or capitalized. Also, indicate the correct accounting treatment for items that should be capitalized. (a) $13,000 paid to rearrange and reinstall machinery. The amount is considered material and original installation costs are unknown. [ Select ] (b) $200,000 paid for addition to building. (Selech (c) $200 paid for tune-up and oil change on delivery truck. Select] (d) $7,000 paid to replace a wooden floor with a concrete floor. This increases the quality of productivity of the building. Book value of original floor is unknown. [Select ] Has (d) $7,000 paid to replace a wooden floor with a concrete floor. This increases the quality of productivity of the building. Book value of original floor is unknown. [Select] (e) $2,000 paid for a major overhaul on a truck, which extends the useful life. Carrying value of the portion of the truck that was overhauled is unknown. [Select]
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