Formidable Express provides overnight delivery of letters and small parcels to numerous locations throughout the United States. As part of its operations, the company maintains a sizable fleet of delivery trucks. Assume that Formidable made the following expenditures related to the fleet during 2008:

1. The company has the engines in its trucks serviced (that is, “tuned-up”) once every two years. The cost of the servicing in 2008 was \($11.0\) million.
2. Due to the high mileage put on the delivery vehicles, the company normally replaces 20%
of its fleet's engines every year. In 2008, the cost incurred to replace engines amounted to \($7.8\) million.
3. The tires on each vehicle are replaced once every three years. The cost of the new tires installed in 2008 amounted to \($1.0\) million.
4. In 2008, the company paid \($3.5\) million to have the trucks in the fleet rustproofed. Management expects that the trucks will now last an extra three years.
5. Because each truck was out of service for about a week due to the rustproofing in (4), the company estimates that it lost \($12.0\) million in revenue during the course of the year.
Required:
Which expenditures should Formidable capitalize and which should be expensed?