1. A machine is purchased for $70,000. The transportation costs were $4,000, installation costs were $1,000 and taxes on the purchase price were $700. Testing runs of the new machine cost $5,000. What is the cost of the machinea 70,000

b. 75000

c. 80,000

d. 80,700

2. Costs that do not extend a plant asset's capacity or its useful life, but merely maintain the asset or restore it to working order are recorded as:

A.capital expenditures.

B.expenses.

C.modification of assets.

D.extraordinary repairs.