Question Details

Insurance on equipment purchased, while the equipment is in transit, is part of the cost of the equipment.



TRUE OR FALSE:
1.	Assets classified as property, plant, and equipment can be either acquired for use in operations, or acquired for resale.

	2.	Assets classified as property, plant, and equipment must be both long-term in nature and possess physical substance.

	3.	When land with an old building is purchased as a future building site, the cost of removing the old building is part of the cost of the new building.

	4.	Insurance on equipment purchased, while the equipment is in transit, is part of the cost of the equipment.

	5.	Special assessments for local improvements such as street lights and sewers should be accounted for as land improvements.





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