Determination of Cost Which of the following 22 items does a company include in the cost of property, plant, and equipment? 1. Contract price 2. List price 3. Freight costs 4. Discounts taken 5. Discounts not taken 6. Installation costs 7. Testing costs 8. Cost of overhaul before initial use 9. Costs of grading land prior to construction 10. Tax assessment for street improvements 11. Delinquent property taxes on acquired property 12. Cost of tearing down an old building (already owned) in preparation for new construction 13. Cost of insurance during construction 14. Excess of costs over revenues during the development stage of the company 15. Interest costs during construction 16. Landscaping costs 17. Severance pay for employees dismissed because of the acquisition of a new machine 18. Cost of tearing down a building on newly acquired land 19. Replacement of an electric motor in a machine 20. Expansion of the heating/cooling system to accommodate an expansion of a building and certain expected future needs 21. Service contract for two years on the acquired asset 22. Cost of training new employees
Determination of Cost Which of the following 22 items does a company include in the cost of property, plant, and equipment?
1. Contract price
2. List price
3. Freight costs
4. Discounts taken
5. Discounts not taken
6. Installation costs
7. Testing costs
8. Cost of overhaul before initial use
9. Costs of grading land prior to construction
10. Tax assessment for street improvements
11. Delinquent property taxes on acquired property
12. Cost of tearing down an old building (already owned) in preparation for new construction
13. Cost of insurance during construction
14. Excess of costs over revenues during the development stage of the company
15. Interest costs during construction
16. Landscaping costs
17. Severance pay for employees dismissed because of the acquisition of a new machine
18. Cost of tearing down a building on newly acquired land
19. Replacement of an electric motor in a machine
20. Expansion of the heating/cooling system to accommodate an expansion of a building and certain expected future needs
21. Service contract for two years on the acquired asset
22. Cost of training new employees
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