Classify the following expenditures as an asset or an expense, and state your reasons why.

1. A Ltd bought three new cars for its sales team, for a cost of $120 000. Two cars were air-conditioned at a cost of $8000, and a mobile phone was installed in one of the cars for $1000.

2. B Ltd bought a new point-of-sale inventory system for $150 000 and trained two employees to use it, at a cost of $15 000. Two months later, both employees left, and an additional $10 000 was spent training a replacement.

3. C Ltd has spent $15 000 developing a new product called Davo Plus. Development is not yet complete. At a recent board meeting, directors voted to continue development.

4. D Ltd paid for an equipment overhaul that is estimated to have increased the productive capacity of the equipment by 15 percent, but it has not increased its useful life.