Consider each of the following transactions. For each one, indicate whether it is a capital expenditure (C) or an expense in the current year (E).
1. Paid a consultant to advise on marketing strategy
2. Installed new lighting fixtures in a leased building
3. Paid for routine maintenance on equipment
4. Developed a patent that cost $50,000 in R&D
5. Paid for overhaul of machinery that extends its useful life
6. Acquired a patent from General Electric for $40,000
7. Paid for a tune-up on one of the autos in the company’s fleet