A business manufacturing machine tools entered into the following transactions in the year ending 30 June 2012:

(a) £246,500 was paid for computerising the design of machine tools.

(b) Machinery used for producing tools had been purchased for £465,000 in 2010 and had been expected to have a useful economic life of 10 years. However, modifications costing £125,000 were made on 1 July 2011 to meet changing customer needs and as a result sales revenue is expected to improve by 50%.

(c) Conveyor belts were installed at a cost of £85,000 when the company commenced business in 2009 and had an expected useful economic life of five years. They were repaired in January 2012 at a cost of £6,000 for damage arising from vandalism.

(d) £25,000 spent in April 2012 on the refurbishment of the conveyor belts already referred to substantially extended their useful life by three years.

Required: 

Explain, with reasons, how you would account for each of the payments reported above.