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Ch(4):Depreciation of Plant Assets89Costs to make thepurchasedbuilding ready for intended use include expenditures for remodeling and replacing or repairing the roof, floors, electrical wiring, and plumbing. When a new building is constructed, cost consists of the contract price plus payments for architects%u2019 fees, buildingpermits, and excavation costs.costs assigned to the building are subject to depreciation.EquipmentEquipment areassets used in operations, such as store check-out counters office equipment,factory machinery, and airplanes. The cost of equipment, such as machinesconsists of the cash purchase price, sales taxes, freight charges, and insurance during transit paid by the purchaser. It also includes expenditure required in assembling, installing, and testing the unit. Once equipment isinuse, any maintenance expenses are treated as operating expenses.