Classify each of the following expenditures as a capital expenditure or a revenue expenditure (expense) related to machinery:

(a) purchase price,

(b) sales tax paid on the purchase price,

(c) transportation and insurance while machinery is in transport from seller to buyer,

(d) installation,

(e) training of personnel for initial operation of the machinery,

(f) special reinforcement to the machinery platform, \((\mathrm{g})\) income tax paid on income earned from the sale of products manufactured by the machinery, (h) major overhaul to extend useful life by three years, (i) ordinary recurring repairs to keep the machinery in good working order, (j) lubrication of the machinery before it is placed in service, \((\mathrm{k})\) periodic lubrication after the machinery is placed in service.

\section*{CHALLENGE EXERCISES}
Measuring the effect of an error (Obj. 3, 8)
Reconstructing transactions from the financial statements (Obj. 3, 5)