3 5. For each of the following items, indicate whether the expenditure should be capitalized ("C") or expensed ("E") in the period when it was incurred: 1 A betterment 2 Replacement of a minor broken part on a machine An expenditure that increases an existing asset's useful life 4. An expenditure that increases the efficiency and effectiveness of a productive asset but does not increase its residual value An expenditure that increases the efficiency and effectiveness of a productive asset and its residual value 6. An expenditure that increases a productive asset's output quality 7. An overhaul to a machine that increases its fair market value and its production capacity by 30% without extending the machine's useful life 8. Ordinary repairs 9. A major overhaul 10 An expenditure that results in a 10%-per-year production cost saving 11. Costs of a major overhaul that brings the asset's condition back to "new," with no change in the estimated useful life