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10 Capitalizing versus expensing For each of the following expenditures, indicate the type of account (asset or expense) in which the expenditure should be recorded.
10 Capitalizing versus expensing For each of the following expenditures, indicate the type of account (asset or expense) in which the expenditure should be recorded. Explain your answers. a. $3,700 for repairing damage that resulted from the careless unloading of a new machine. b. $25,300 cost of designing and registering a trademark. c. $14,600 in legal fees incurred to perform a title search for the acquisition of land. d. $5,100 cost of patching a leak in the roof of a building. e. $325,000 cost of salaries paid to the research and development staff. 10 Capitalizing versus expensing For each of the following expenditures, indicate the type of account (asset or expense) in which the expenditure should be recorded. Explain your answers. a. $3,700 for repairing damage that resulted from the careless unloading of a new machine. b. $25,300 cost of designing and registering a trademark. c. $14,600 in legal fees incurred to perform a title search for the acquisition of land. d. $5,100 cost of patching a leak in the roof of a building. e. $325,000 cost of salaries paid to the research and development staff
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