Treating a capital expenditure as an immediate expense: is considered proper accounting treatment according to GAAP. understates expenses and overstates owners' equity for the current year. understates expenses and understates assets for the current year. overstates assets and overstates owners' equity for the current year. overstates expenses and understates net income for the current year. Traylor Company made a lump-sum purchase of land, buildings, and equipment for $220,000. The appraised market value for each item is $20,000 land, $70,000 buildings, and $210,000 equipment. Traylor should debit the Equipment account for: $70,000 $154,000 $210,000 $220,000