1) Classify each of the following expenditures as capital expenditure CE(think-capital asset, increasing value) or revenue expenditure RE (think- expense item). (6pts)

1. ____ Ordinary recurring repairs to keep the machinery in good working order

2. __ __ Major overhaul to extend the useful life of a vehicle by three years

3. ___ __ Installation costs for a new machine

4. __ ___ Painting

5. _______ Training of new employees on current equipment

6. _______ Clearing land to build a new facility