Classify each of the following costs associated with long-lived assets as one of the following:
-Cost of insurance during the construction of new office building
A)Buildings
B)Machinery and equipment
C)Land
D)Land improvements

Question

Quizplus · Accepted Answer

The cost of insurance during the construction of a new office building is capitalized as part of the building's cost because it is a direct cost associated with bringing the building to its intended use.

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