Question 1 of 7 -/17 For each of the items isted below, indicate whether the cost should be debited to land, buildings, equipment, land improvements, or an expense account Amount $150,000 1. 2 3,000 3. 7.500 Land Equipment No effect Expense Expense or Land improvements Building Land improvements Expense or Buildings 4. Description of Expenditure Acquisition of a plece of land to be used as a building site Demolition of a small building on the land, to make way for the new building Leveling 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 If no recoverable 290,000 5. 12,000 6. 6,000 7 80,000 8 6.000 If GST or HST 3,000 Installation of the new equipment 10 1,500 Testing and adjustment of the new equipment prior to its use 1,000 Minor repairs to some old equipment 12 7,000 Major overhaul of an old piece of equipment, extending its useful fe by three years 13