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Indicate whether each of the following expenditures should be classified as land (L), land improvements (LI), buildings (B), equipment (E), or none of these (X). _____ 1. Parking lots _____ 2. Electricity used by a machine _____ 3. Interest on building construction loan _____ 4. Cost of trial runs for machinery _____ 5. Drainage costs _____ 6. Cost to install a machine _____ 7. Fences _____ 8. Unpaid (past) property taxes assumed _____ 9. Cost of tearing down a building when land and a building on it are purchased

Indicate whether each of the following expenditures should be classified as land (L), land improvements (LI), buildings (B), equipment (E), or none of these (X). _____ 1. Parking lots _____ 2. Electricity used by a machine _____ 3. Interest on building construction loan _____ 4. Cost of trial runs for machinery _____ 5. Drainage costs _____ 6. Cost to install a machine _____ 7. Fences _____ 8. Unpaid (past) property taxes assumed _____ 9. Cost of tearing down a building when land and a building on it are purchased

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Indicate whether each of the following expenditures should be classified as land (L), land

improvements (LI), buildings (B), equipment (E), or none of these (X).

_____ 1. Parking lots

_____ 2. Electricity used by a machine

_____ 3. Interest on building construction loan

_____ 4. Cost of trial runs for machinery

_____ 5. Drainage costs

_____ 6. Cost to install a machine

_____ 7. Fences

_____ 8. Unpaid (past) property taxes assumed

_____ 9. Cost of tearing down a building when land and a building on it are purchased

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