Classifying and Capitalizing Costs
Identify the following costs that could be capitalized on the firmâ€™s balance sheet.
Identify costs that should be included in property, plant, and equipment (PPE).
a. New windshield wiper blades on the companyâ€™s truck
b. New sidewalks in front of the firmâ€™s factory
c. Freight expenses for new equipment installed in the factory
d. Installation costs for the new equipment
e. Realtorâ€™s fees associated with land purchase
f. Minor engine repair on the truck
g. Engine replacement on the truck
h. Razing or demolishing a building on newly acquired land
i. Design costs for a new building