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Indicate Whether Each of the Following Expenditures Should Be Classified

Question 10

Matching

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).

Premises:
Parking lots
Electricity used by equipment
Sewage system cost
Interest on building construction loan
Cost of trial runs for equipment
Drainage costs
Cost to install equipment
Fences
Unpaid (past) property taxes assumed
Cost of tearing down a building when land and a building on it are purchased
Responses:
land (L)
land improvements (LI)
buildings (B)
equipment (E)
none of these (X)

Correct Answer:

Parking lots
Electricity used by equipment
Sewage system cost
Interest on building construction loan
Cost of trial runs for equipment
Drainage costs
Cost to install equipment
Fences
Unpaid (past) property taxes assumed
Cost of tearing down a building when land and a building on it are purchased
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