Which of the following statements are correct?

(i) Sales tax paid on equipment acquired for use in the business is not capitalized.

(ii) Insurance on equipment purchased, while the equipment is in transit, is part of the cost of the equipment.

(iii) Variable overhead costs incurred to self-construct an asset should be included in the cost of the asset.

(iv) Companies should not assign any portion of fixed overhead to self-constructed assets.

(v) When land with an old building is purchased as a future building site, the cost of removing the old building is part of the cost of building.

Multiple Choice

• (ii), (iv) and (v)

• (i), (ii) and (iv)

• (iii) and (iv)

• (ii), (iii) and (v)

• (ii) and (iii)