Assigning costs to plant assets C1 Q
Listed below are costs (or discounts) to purchase or construct new plant assets. (1) Indicate whether the costs should be expensed or capitalized (meaning they are included in the cost of the plant assets on the
Expensed or Asset
Capitalized Category
_ _ 1. Wages paid to train employees to use new equipment.
_ _ 2. Invoice cost paid for new equipment,
_ _ 3. Early payment discount taken on the purchase of new equipment.
_ _ 4. Realtor commissions incurred on land purchased.
_ _ 5. Property taxes on land incurred after it was purchased,
_ _ 6. Costs of oil for the truck used to deliver new equipment.
_ _ 7. Costs to lay foundation for a new building.
_ _ 8. Insurance on a new building during its construction.
Want to see the full answer?
Check out a sample textbook solutionChapter 10 Solutions
FUND OF ACCT PRIN (LOOSE)+ACCESS CARD
- AccountingAccountingISBN:9781337272094Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.Publisher:Cengage Learning,Accounting Information SystemsAccountingISBN:9781337619202Author:Hall, James A.Publisher:Cengage Learning,
- Horngren's Cost Accounting: A Managerial Emphasis...AccountingISBN:9780134475585Author:Srikant M. Datar, Madhav V. RajanPublisher:PEARSONIntermediate AccountingAccountingISBN:9781259722660Author:J. David Spiceland, Mark W. Nelson, Wayne M ThomasPublisher:McGraw-Hill EducationFinancial and Managerial AccountingAccountingISBN:9781259726705Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting PrinciplesPublisher:McGraw-Hill Education