Analyze revenue and capital expenditures. (LO 4) For each of the following, tell whether it should be
Question:
Analyze revenue and capital expenditures. (LO 4)
For each of the following, tell whether it should be classified as
(a) a revenue expenditure (expensed),
(b) a capital expenditure (capitalized), or
(c) neither.
a. Paid \(\$ 2,000\) for routine repairs
b. Paid cash dividends to shareholders
c. Paid \(\$ 6,000\) for repairs that will extend the asset's useful life
d. Purchased a patent for \(\$ 5,000\) cash
e. Purchased a machine for \(\$ 10,000\) and gave a 2 -year note
f. Paid \(\$ 50,000\) for an addition to a building g. Paid \(\$ 1,000\) for routine maintenance on a machine
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