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For the transactions below, pick the letter that describes the account or accounts to be...

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Accounting

For the transactions below, pick the letter that describes the account or accounts to be debited according to GAAP. Ignore income taxes.

a. asset(s) only

b. accumulated amortization, depletion, or depreciation only

c. asset(s) and expense

e. some other account or combination of accounts

1. An engine in one of Williams Companys vans was overhauled at a cost of $700. It is expected that this will extend the life of the van for multiple years.

2. Brown Co. recently purchased land and two buildings for a total cost of $50,000, and entered the purchase on the books. The $1,000 cost of razing the smaller building, which has an appraisal value of $2,500, is recorded.

3. A construction company traded its old machine with a net book value of $4,000 plus cash of $6,500 for a new one which had a fair value of $9,250.

4. The extension of the corporate headquarters building was finished at a cost of $6,000 to provide an additional office.

5. An improvement, which extended the life but not the usefulness of the asset, cost $6,000.

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