scounts) to purchase or1) Indicate whether the costsalized (Meaning they areant assets on the balanceuld be capitalized, indicate ints (Equipment, Building, orId be recorded on the balanceListCategoryuilding.a new plant.ised in operations.equipment into the production line.ipment.or a day to ensure it was working properly. Listed below are costs (or discounts) to purchase orconstruct new plant assets. (1) Indicate whether the costsshould be expensed or capitalized (Meaning they areincluded in the cost of the plant assets on the balancesheet.) (2) For costs that should be capitalized, indicate inwhich category of plant assets (Equipment, Building, orLand) the related costs should be recorded on the balancesheet.List1. Costs to install necessary lighting in a new building.2. Costs to clear and grade land purchased for a new plant.3. Costs to lay foundation for a new building.4. Construction costs for a new building to be used in operations.5. Costs charged by a contractor to install new equipment into the production line.6. Fees to perform necessary tests of new equipment.7. Costs to pay a crew to test new equipment for a day to ensure it was working properly.8. Sales tax on new equipment purchased.

Answered: Image /qna-images/answer/9de63cb5-f5d4-48e4-b4d8-dcc7f0af1df7.jpg

1. Costs to install necessary lighting in a new building. 2. Costs to clear and grade land purchased for a new plant. 3. Costs to lay foundation for a new building. 4. Construction costs for a new building to be used in operations. 5. Costs charged by a contractor to install new equipment into the production line. 6. Fees to perform necessary tests of new equipment. 7. Costs to pay a crew to test new equipment for a day to ensure it was working properly. 8. Sales tax on new equipment purchased.

1. Costs to install necessary lighting in a new building. 2. Costs to clear and grade land purchased for a new plant. 3. Costs to lay foundation for a new building. 4. Construction costs for a new building to be used in operations. 5. Costs charged by a contractor to install new equipment into the production line. 6. Fees to perform necessary tests of new equipment. 7. Costs to pay a crew to test new equipment for a day to ensure it was working properly. 8. Sales tax on new equipment purchased.

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter7: Fixed Assets, Natural Resources, And Intangible Assets

Section: Chapter Questions

Problem 7.1.3P

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