For Each Transaction Numbered 1 Through 6 Below, Identify Which

question 25

Essay

For each transaction numbered 1 through 6 below, identify which accounting treatment-capitalized or expensed-should be used to properly account for the transactions. You may use each letter more than once or not at all.
______1. Freight costs on production equipment in transit
______2. Sales tax on equipment purchase
______3. Damaged during installation and repair costs
______4. Interest paid on construction loan during the building period
______5. Survey costs by contractor
______6. Construction insurance to cover theft or vandalism during building construction

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Definitions:

Violent Crimes

Acts that involve force or the threat of force against others, including assault and murder.

Erik Erikson

A developmental psychologist and psychoanalyst known for his theory on the psychological development of human beings, notably the eight stages of human development.

Trust

A psychological state comprising the intention to accept vulnerability based upon positive expectations of the intentions or behavior of another.

Intimacy

A close, familiar, and usually affectionate or loving personal relationship with another person or group.