Explain how you would decide whether to record each of the following expenditures as an asset or an

Explain how you would decide whether to record each of the following expenditures as an asset or an expense. Assume all items are material.

(a) Legal fees paid in connection with the purchase of land are $1,500.

^(b) ^Edua ^r ^{do, Inc. paves the driveway leading to the o} ^f ^{fice building at a cost of $21,000.}

^(c) ^A ^{meat market pu} ^r ^{chases a meat-grinding machine at a cost of $3,500.}

^(d) ^On ^June ^30, ^Mon ^r ^oe ^and ^Meno, ^medical ^doctors, ^pay ⁶ ^months’ ^o ^f ^fice ^r ^ent ^to ^cover ^the ^month ^of ^July

^{and the next 5 months.}

^(e) ^Smith’s ^Ha ^r ^dwa ^r ^e ^Company ^pays ^$9,000 ⁱⁿ ^wages ^to ^labo ^r ^ers ^for ^const ^r ^uction ^on ^a ^building ^to ^be

^{used in the business.}

^(f) ^Alva ^r ^ez’s ^Florists ^pays ^wages ^of ^$2,100 ^for ^the ^month ^an ^employee ^who ^serves ^as ^driver ^of ^their

delivery truck.

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