Identify the following costs that could be capitalized on the firm’s balance sheet (included in property, plant, and equipment). New windshield wiper blades on the company’s truck New sidewalks in front of the firm’s factory Freight expenses for new equipment installed in the factory Installation costs for the new equipment Realtor’s fees associated with land purchase Minor engine repair on the truck Engine replacement on the truck Razing or demolishing a building on newly acquired land Design costs for a new building Value-added tax Construction expenses associated with building a garage Costs required to bring the equipment to its intended location Administration and other general overhead costs Idle capacity Wasted materials, labour and other resources
Identify the following costs that could be capitalized on the firm’s balance sheet (included in property, plant, and equipment). New windshield wiper blades on the company’s truck New sidewalks in front of the firm’s factory Freight expenses for new equipment installed in the factory Installation costs for the new equipment Realtor’s fees associated with land purchase Minor engine repair on the truck Engine replacement on the truck Razing or demolishing a building on newly acquired land Design costs for a new building Value-added tax Construction expenses associated with building a garage Costs required to bring the equipment to its intended location Administration and other general overhead costs Idle capacity Wasted materials, labour and other resources
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter10: Property, Plant And Equipment: Acquisition And Subsequent Investments
Section: Chapter Questions
Problem 19E
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Identify the following costs that could be capitalized on the firm’s balance sheet (included in property, plant, and equipment).
- New windshield wiper blades on the company’s truck
- New sidewalks in front of the firm’s factory
- Freight expenses for new equipment installed in the factory
- Installation costs for the new equipment
- Realtor’s fees associated with land purchase
- Minor engine repair on the truck
- Engine replacement on the truck
- Razing or demolishing a building on newly acquired land
- Design costs for a new building
- Value-added tax
- Construction expenses associated with building a garage
- Costs required to bring the equipment to its intended location
- Administration and other general overhead costs
- Idle capacity
- Wasted materials, labour and other resources
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