Franchesca Company recorded the following transactions during its 2004 fiscal year:
a. Costs incurred for buildings under construction but not completed by year-end:
Labor ..............$350,000
Materials ..............675,000
Utilities ...............87,000
Special tools and equipment ......22,000
Interest on construction loan .....94,000
b. The cost of an addition to an existing building was $840,000.
c. The cost of repairs to equipment was $90,000. These repairs are required on a regular basis and do not affect the estimated useful life of the equipment.
How would each of these transactions affect Franchesca’s financial statements for 2004? Assume cash had been paid for all costs by the end of the fiscal year.