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Classify Each of the Following Costs Associated with Long-Lived Assets

Question 28

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Classify each of the following costs associated with long-lived assets as one of the following:

Premises:
Fences around land at new business location
Paved parking areas at new business location
Outdoor lighting at new business location
Walkways to surround new business location
Modifying a building purchased for new business location
Supplies (materials) used to test new equipment
Cost of installing new equipment
Cost of grading and leveling land to be used for a new business site
Cost of removing an existing building to ready land for use as a new business site
Cost assessed by city for paving a public street that borders land on which a new business location will be constructed
Responses:
Land improvements
Buildings
Land
Machinery and equipment

Correct Answer:

Fences around land at new business location
Paved parking areas at new business location
Outdoor lighting at new business location
Walkways to surround new business location
Modifying a building purchased for new business location
Supplies (materials) used to test new equipment
Cost of installing new equipment
Cost of grading and leveling land to be used for a new business site
Cost of removing an existing building to ready land for use as a new business site
Cost assessed by city for paving a public street that borders land on which a new business location will be constructed
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