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).a. New windshield wiper blades on the company’s truckb. New sidewalks inside the firm’s factoryc. Freight expenses for new equipment installed in the factoryd. Installation costs for the new equipmente. Realtor’s fees associated with factory purchasef. Minor engine repair on the truckg. Engine replacement on the truckh. Razing or demolishing a building on newly acquired landi. Design costs for a new buildingg. Value-added taxk. Construction expenses associated with building a garagel. Costs required to bring the equipment to its intended locationm. Administration and other general overhead costsn. Salaries of HR departmento. Wasted materials, labour and other resources p. idle capacity

The following schedule reflects the incremental costs and revenues for acapital project. The company uses straight-line depreciation. The interestexpense reflects an allocation of interest on the amount of this investment,based on the company’s weighted average cost capital:Revenues $650,000Direct costs $270,000Variable overhead 50,000Fixed overhead 20,000Depreciation 70,000General & administrative 40,000Interest expense 8,000458,000Net profit before taxes $192,000══════The annual cash flow from this investment, before tax considerations, would be:

Capital and Revenue Expenditures                                   Kimbrell Freight Lines Co. incurred the following costs related to trucks and vans used in operating                 its delivery service:                                   Classify each of the costs as either a capital expenditure or a revenue expenditure.                 Choose a C for capital or an R for revenue in the box following the item.                                   1. Changed the oil and greased the joints of all the trucks and vans.                                 2. Installed a hydraulic lift to a van                                 3. Installed a new engine in a truck purchased three years ago                                 4. Repaired a flat tire on one of the vans                                 5. Installed a refrigeration unit on a truck to equip it to carry perishable goods

Danube, Toggle, and ConnectOn rely on various intangible assets to operate their businesses. These companies amortize the cost of these assets using the straight-line method over the following average estimated useful lives (in years), as reported in their annual reports. Type of Intangible Asset Developed Technology Danube 5.4 Trade Names 5.9 Toggle 5.6 10.1 ConnectOn 3.5 11.5 Customer Relationships 5.1 5.5 7.5 Required: 1. Based on these estimates, identify the company that uses the longest periods for amortizing most of its classes of intangible assets. Toggle Danube ConnectOn 2. Will these estimates increase or decrease that company's net income relative to its competitors? Increase Decrease

Which two of the costs on the invoice for a new company car would be classified as expenditure charged to profit or loss Road tax Number plates Maintenance contract Delivery cost

For each of the following items, indicate if it is a Capital Expenditures (CE) or Revenue Expenditure (RE).   1.     Constructed an addition to an existing building. 2.     Repainted the president’s office. 3.     Paid cash for improvements that will increase the number of products that the machine can produce per hour. 4.     Replaced the tires on a company delivery vehicle. 5.     Replaced a component of a machine that will increase the economic life of that machine.

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Discuss when should a company in the extractive industries start accounting for its restoration costs?

The Madison Sign Company purchased land as a factory site for $75,000. Prior to construction of the new building, the land had to be cleared of trees and brushConstruction costs incurred during the first year are listed below