Sherman, Inc., uses the calendar year as its reporting period. During Year 1, the company completed numerous property, plant, and equipment transactions. In particular, Sherman incurred noncurrent debt to build a new warehouse storage facility at its current location. An unrelated building contractor managed the new warehouse construction project.

Sherman has a policy of capitalizing expenditures with a unit cost of at least $1,000 and a useful life greater than 1year. The company prorates depreciation expense in the year of acquisition based on the date of purchase.

Select from the option list provided the accounting treatment for each property, plant, and equipment transaction below. Each choice may be used once, more than once, or not at all.

Asset	Cost	Accounting treatment
1.Costofparkinglotfornewwarehouse	$8,500.00
2. Painting all of the ceiling tiles in the hallways and common areas of the property	$8,500.00
3. Replace the cooling system in the company's current facility with a more modern and fuel efficient model	$33,000.00
4.15newdesktopcomputersforsupportpersonnel	$22,500.00
5. New process costing software -- this software will need to be replaced in 5years	$12,000.00
6. Replacing office windows cracked as a result of an explosion at a neighboring manufacturing plant	$16,000.00

the options for accounting treatment are:

a. capitalize and depreciate

b. capitalize but do not depreciate

c. capitalize and amortize

d. expense at time incurred

e. expense monthly

f. partially capitalize and partially expense

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