Aubrey Seagars owns and operates Diamond Transport Co. During the past year, Aubrey incurred the following costs
Question:
Aubrey Seagars owns and operates Diamond Transport Co. During the past year, Aubrey incurred the following costs related to an 18-wheel truck:
1. Installed a television in the sleeping compartment of the truck.
2. Replaced the old radar detector with a newer model that is fastened to the truck with a locking device that prevents its removal.
3. Installed a wind deflector on top of the cab to increase fuel mileage.
4. Modified the factory-installed turbo charger with a special-order kit designed to add 50 more horsepower to the engine performance.
5. Replaced a headlight that had burned out.
6. Replaced the hydraulic brake system that had begun to fail during his latest trip through the Rocky Mountains.
7. Changed engine oil.
8. Replaced a shock absorber that had worn out.
9. Replaced fog and cab light bulbs.
10. Removed the old CB radio and replaced it with a newer model with a greater range.
Classify each of the costs as a capital expenditure or a revenue expenditure.
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