Listed below are certain costs or discounts incurred in the purchase or construction of new plant assets.
1. indicate whether the costs should be expensed or capitalized.
2. for costs that should be included in plant assets, indicate in which category of plant assets (equipment, building, or land) the related costs should be recorded on the balance sheet.
1. charges incured to train employees to use new equipment. 2. invoice cost to purchase new equipment 3. deduction for an earl payment discount taken on the puchase of new equipment. 4. real estate commissions incurred on land purchased for a new plant. 5. property taxes on land incurred after it was purchased 6. costs of tune-up for the truck used to deliver new equipment 7. costs to lay foundation for a new building 8. insurance on a new building during the construction phase.

Costco wholesale corporation operates membership warehouses selling food, appliances, consumer electronics, apparel and other household goods at 471 locations across the u.s. as well as in canada, mexico and puerto rico. as of its fiscal year-end 2005, costco had approximately 21.2 million members. selected fiscal-year information from the company's balance sheets follows. ($ millions). selected balance sheet data 2005 2004 merchandise inventories $4,015 $3,644 deferred membership income (liability) 501 454 (a) during fiscal 2005, costco collected $1,120 cash for membership fees. use the financial statement effectstemplate to record the cash collected for membership fees. (b) in 2005, costco recorded $46,347 million in merchandise costs (that is, cost of goods sold). record thistransaction in the financial statement effects template. (c) determine the value of merchandise that costco purchased during fiscal-year 2005. use the financial statementeffects template to record these merchandise purchases. assume all of costco's purchases are on credit.