Legal fees paid in connection with the purchase of land are $1,500. select between asset or expense (b) Eduardo, Inc. paves the driveway leading to the office building at a cost of $21,000. select between asset or expense (c) A meat market purchases a meat-grinding machine at a cost of $3,500. select between asset or expense (d) On June 30, Monroe and Meno, medical doctors, pay 6 months’ office rent to cover the month of July and the next 5 months. select between asset or expense (e) Smith’s Hardware Company pays $9,000 in wages to laborers for construction on a building to be used in the business. select between asset or expense (f) Alvarez’s Florists pays wages of $2,100 for the month to an employee who serves as driver of their delivery truck. select between asset or expense

A.)Legal fees paid in connection with the purchase of land are $1,500 = ASSET

(B.) Eduardo, Inc. paves the driveway leading to the office building at a cost of $21,000 = ASSET

(C) A meat market purchases a meat-grinding machine at a cost of $3,500 = ASSET

(D) On June 30, Monroe and Meno, medical doctors, pay 6 months’ office rent to cover the month of July and the next 5 MONTHS = EITHER ASSET OR EXPENSE

(E) Smith’s Hardware Company pays $9,000 in wages to laborers for construction on a building to be used in the Business = ASSET

(F) Alvarez’s Florists pays wages of $2,100 for the month to an employee who serves as driver of their delivery TRUCK = EXPENSE

Explanation:

There are various distinctions which can be made between asset and expense. However, a very distinct difference between them is that ASSET usually are regarded as those spendings which provides or offers future economic benefit to a company such as equipment purchase while EXPENSE may be classed as those spendings meant to offset a current bill such as salary or wage payment.

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