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

1. Freight costs necessary to ship the equipment from the manufacturer to the warehouse

2. Proceeds received from selling scrap metal from old equipment being replaced

3. Costs to clear and grade land purchased for a new plant

4. Insurance on building after construction is complete and it is in use

5. Parking ticket fees incurred by the delivery truck that illegally parked when delivering new equipment

6. Costs to install needed electrical lines in a new building

7. Fees to perform necessary tests of new equipment

8. Janitorial costs incurred to clean equipment