Intermediate Accounting 14th Edition

Published by Wiley
ISBN 10: 0470587237
ISBN 13: 978-0-47058-723-2

Chapter 2 - Conceptual Framework for Financial Reporting - Brief Exercises - Page 71: BE2-13e

Answer

This expenditure represents an asset that should be deposited into the building account.

Work Step by Step

The $9,000 is part of the cost of the entity asset, which will contribute to production for many assets. Therefore, this expenditure should be treated as an asset and should be debited into the building account.
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