Analyze revenue and capital expenditures. (LO 4) For each of the following, tell whether it should be

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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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Financial Accounting

ISBN: 9780131492011

1st Edition

Authors: Jane L. Reimers

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