Reference no: EM131103256
1. Explain how you would decide whether to record each of the following expenditures as an asset or an expense. Assume all items are material.
(a) Legal fees paid in connection with the purchase of land are $1,500.
(b) Benjamin Bratt, Inc. paves the driveway leading to the office building at a cost of $21,000.
(c) A meat market purchases a meat-grinding machine at a cost of $3,500.
(d) On June 30, Alan and Alda, medical doctors, pay 6 months' office rent to cover the month of July and the next 5 months.
(e) Tim Taylor's Hardware Company pays $9,000 in wages to laborers for construction on a building to be used in the business.
(f) Nancy Kwan's Florists pays wages of $2,100 for November to an employee who serves as driverof their delivery truck.
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: Explain how you would decide whether to record each of the following expenditures as an asset or an expense. Assume all items are material.
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