Deering Inc. incurred the following costs to open a new manufacturing facility for its new product line in
Required: Determine if each itemcost should be capitalized as land, buildings, equipment, or land improvements or if the itemcost should be expensed.
a Cost of parking lots
b Cost of demolishing an old building that was on the land when purchased
c Replacement of a minor broken piece of equipment
d Freight on equipment
e Cash paid for land and an old building
f Excavation costs for new building
g Landscaping costs useful life of years
h Installation and preparation costs of equipment
i Cost of surveying and grading of land
j Salary of the company's president
k Architect's fees for constructing building plansdesigns
I Attorney fees and recording fees related to purchasing land
m Interest on loans during building construction
n Installation of fences around the manufacturing facility
O comission fee paid to the real estate agency
p land assessment by city
q equipment purchase including sales tax
r delinquent real estate taxes kn property assumed by the purchaser
s insurance costs while in transit
t ordinary repairs maintenance and oil changes on equipment