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

question 62

Multiple Choice

Classify each of the following costs associated with long-lived assets as one of the following:
-Fees paid to architect to design new office building

• A)Buildings
• B)Machinery and equipment
• C)Land
• D)Land improvements

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Definitions:

Good Faith

Acting with honesty and sincerity without any intention to defraud or seek undue advantage.

Without Recourse

A term indicating that the seller or transferor of a financial instrument is not liable to the buyer or transferee in case of default.

Discharged

Refers to the completion or termination of a legal obligation or debt.

Primary Liability

The direct responsibility to pay a debt or fulfill an obligation, without relying on another to first default.