Listed below are certain costs (or discounts) incurred in the purchase or construction of new plant assets. Indicate whether the costs should be expensed or capitalized (included in the cost of the plant assets on the balance sheet.) For costs that should be included in plant assets, indicate in which category of plant assets (Equipment, Building, or Land) the related costs should be recorded on the balance sheet.

QS 8-2 Assigning Costs to plant assets LO C1 Listed below are certain costs (or discounts) incurred in the purchase or construction of new plant assets. Indicate whether the costs should be expensed or capitalized (included in the cost of the plant assets on the balance sheet.) For costs that should be included in plant assets, indicate in which category of plant assets (Equipment, Building, or Land) the related costs should be recorded on the balance sheet. Category Event List 1. Costs to remove and dispose of old equipment being replaced Costs for a crew to unpack and assemble new equipment 3. Construction costs for a new building to be used in operations 4. Freight costs to ship the equipment from the manufacturer to the warehouse 5. Costs to purchase land for a new plant 6. Charges incurred to train employees to use new equipment 7. Brokerage fees incurred to purchase a new plant warehouse 8. Costs to build a base to hold new equipment