The following are capital expenditures EXCEPT the decoration of office space installation of an air conditioning system O fire insurance on a building renovation of office space
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The following are capital expenditures EXCEPT the
decoration of office space
installation of an air conditioning system
O fire insurance on a building
renovation of office space
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- Which of the following items should be accounted for as a capital expenditure?a. The monthly rental cost of an office buildingb. Costs incurred to repair leaks in a building’s roofc. Maintenance fees paid with funds provided by the company’s capitald. Taxes paid in conjunction with the purchase of office equipmentWhich of the following is NOT a capital expenditure? Fire insurance premium on a new building Architect's fees for a new building Expenditure incurred in the construction of parking space for staff Costs incurred in transporting newly purchases machineryWhich of the following is considered capital expenditure Select one: a. Research expenses. b. Purchase of office consumables. c. Cost of material to construct new plant. d. Staff overtime.
- Which of the following is an example of a capital expenditure? Select all that apply A- New equipment B- Employee salaries C- Computer software D- Repair and renovation costsClassify whether the following is capital expenditure or revenue expenditure:a. Purchase of dust cover for the computer printer.b. Payment made to get the building permit for the construction of storage shed.Which cost is not recorded as part of the cost of a building? a. Real estate commission paid to buy the building b. Construction materials and labor c. Concrete for the building’s foundation d. Annual building maintenance
- All of the following costs associated with acquiring a building should be capitalized except a. The costs of buildings permits b. The cost of a strike associated with the construction of the building c. the contract price d. the costs of excavation for the buildingWhich of the following are the capitalized costs of the land and the new building respectivelyWhich cost is not recorded as part of the cost of a building? Real estate commission paid to buy the building Construction materials and labor Concrete for the building’s foundation Annual building maintenance
- Which costs would most likely be capitalized in the “Land Improvements” account? Costs associated with clearing the land for its intended business use Costs associated with paving and fencing on the land Costs associated with constructing a building on the landIndicate whether each of the following expenditures should be classified as land, land improvements, buildings, equipment, or none of these. 1. 2. Parking lots Electricity used by a machine 3. Excavation costs 4. Interest on building construction loan 5. Cost of trial runs for machinery 6. Drainage costs 7. Cost to install a machine 8. Fences 9. Unpaid (past) property taxes assumed 10. Cost of tearing down a building when land and a building on it are purchasedListed 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 balance sheet.) (2) For costs that should be capitalized, indicate in which category of plant assets (Equipment, Building, or Land) the related costs should be recorded on the balance sheet. List 1. Costs to install necessary lighting in a new building. 2. Costs to clear and grade land purchased for a new plant. 3. Costs to lay foundation for a new building. 4. Construction costs for a new building to be used in operations. 5. Costs charged by a contractor to install new equipment into the production line. 6. Fees to perform necessary tests of new equipment. 7. Costs to pay a crew to test new equipment for a day to ensure it was working properly. 8. Sales tax on new equipment purchased.