2. The acquisition costs of property, plant, and equipment should include all normal, reasonable and necessary costs to get the asset in place and ready for use.
3. When land is purchased to construct a new building, the cost of removing any structures on the land should be charged to the building account.
4. Land acquired as a speculation is reported under Investments on the balance sheet.
5. To a major resort, timeshare properties would be classified as property, plant and equipment.
6. Standby equipment held for use in the event of a breakdown of regular equipment is reported as property, plant, and equipment on the balance sheet.
7. The cost of repairing damage to a machine during installation is debited to a fixed asset account.
8. During construction of a building, the cost of interest on a construction loan should be charged to an expense account.
9. The cost of computer equipment does include the consultant's fee to supervise installation of the equipment.
10. When cities give land or buildings to a company to locate in the community, no entry is made since there is no cost to the company.