QS 8-2 Assigning Costs to plant assets LO C1 Listed below are costs (or discounts) to purchase or construct 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, indicate in which category of plant assets (Equipment, Building, or Land) the related costs should be recorded on the balance sheet. Event List Category 1. Expensed 2. Expensed 3. 4. Costs to remove and dispose of old equipment being replaced Costs charged by a contractor to install new equipment into the production line Attorney fees incurred to complete the purchase documents for a new plant warehouse Costs to pay a crew to test new equipment for a day to ensure it was working properly Costs to clear and grade land purchased for a new plant Repair costs to fix new equipment damaged by the crew that unpacked it Parking ticket fees incurred by the delivery truck that illegally parked when delivering new equipment Costs to install needed electrical lines in a new building 5. 6. 7 8