Indicate Whether Each of the Following Expenditures Should Be Classified

Essay

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. 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 purchased