Determine the proper treatment of each of the following expenditures: a. Zoe purchases land costing.

Determine the proper treatment of each of the following
expenditures:

a. Zoe purchases land costing $8,000. During the current
year, she pays $2,000 to have utilities and sewer lines installed on the
property. Zoe also pays $600 in interest on the loan used to obtain the land
and $300 in property taxes on the land.

b. On August 2, Carruth Corporation pays $11,000 for a
2-year fire insurance policy on its manufacturing facility.

c. The Freeborn Partnership purchases a rental property
costing $125,000. Before it rents out the building, Freeborn repaints it at a
cost of $2,000 and spends $1,
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Determine the proper treatment of each of the following
expenditures:

a. Zoe purchases land costing $8,000. During the current
year, she pays $2,000 to have utilities and sewer lines installed on the
property. Zoe also pays $600 in interest on the loan used to obtain the land
and $300 in property taxes on the land.

b. On August 2, Carruth Corporation pays $11,000 for a
2-year fire insurance policy on its manufacturing facility.

c. The Freeborn Partnership purchases a rental property
costing $125,000. Before it rents out the building, Freeborn repaints it at a
cost of $2,000 and spends $1,200 on minor repairs. After the property is
rented, a pipe bursts, requiring $2,000 in repairs.

d. Aqua Robotics, Inc., purchases and pays for supplies
costing $1,400 on December 26. As of December 31, the company has not used
$1,200 worth of the supplies.

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