This exercise will give you practice in identifying capital expenditures and revenue expenditures . Sellen Supply Company, a newly formed corporation, incurred the following expenditures related to Land, Buildings, and Equipment.

Abstract company”s fee for title search

$520

Architect”s fees

“I 0,200

Cash paid for land and dilapidated building thereon

100.000

Removal of old building

$20,000

Less salvage

5.500

14,500

Surveying before construction

370

Excavation before construction for basement

19,000

Machinery purchased

55,000

Freight on machinery purchased

1,340

Jew building constructed

500,000

Assessment by city for drainage project

1,600

Installation of machinery

2.000

Trees, shrubs, and other landscaping after completion of building (permanent in nature)

5.400

Instructions

(a) Identify the amounts that should be debited to Land.

(b) Identify the amounts that should be debited to Buildings.

(c) Identify the amounts that should be debited to Equipment.