EXPENDITURES AFTER ACQUISITION The following expenditures were incurred during the year:

. Paid $4,000 for an overhaul of an automobile engine.

. Paid $20,000 to add capacity to a cellular phone company’s wireless network.

. Paid $200 for routine maintenance of a manufacturing machine.

. Paid $10,000 to remodel an office building.

. Paid $300 for ordinary repairs Required:

Classify the following expenditures as either capital or revenue expenditures.

Exercise