During the current year, Arkells Inc. made the following expenditures relating to plant machinery.
• Renovated five machines for $100,000 to improve efficiency in production of their remaining useful life of five years
• Low-cost repairs throughout the year totaled $70,000
• Replaced a broken gear on a machine for $10,000
A. What amount should be expensed during the period?
B. What amount should be capitalized during the period?