3. Prepare balance sheet and income statement : A = L+ SE

Capital versus Revenue Expenditures On January 1, 2015, Jose Company purchased a building for $200,000 and a delivery truck for $20,000. The following expenditures have been incurred during 2017: - The building was painted at a cost of $5,000. - To prevent leaking, new windows were installed in the building at a cost of $10,000. - To improve production, a new conveyor system was installed at a cost of $40,000. - The delivery truck was repainted with a new company logo at a cost of $1,000. - To allow better handling of large loads, a hydraulic lift system was installed on the truck at a cost of $5,000. - The truck's engine was overhauled at a cost of $4,000. Required: 1. Determine which of those costs should be capitalized. Assume that all costs were incurred on January 1, 2017. Select "Yes" if the cost should be capitalized; otherwise select "No". The building was painted at a cost of $5,000. To prevent leaking, new windows were installed in the building at a cost of $10,000. To improve production, a new conveyor system was installed at a cost of $40,000. The delivery truck was repainted with a new company logo at a cost of $1,000. To allow better handling of large loads, a hydraulic lift system was installed on the truck at a cost of $5,000. The truck's engine was overhauled at a cost of $4,000. 2. Determine the amount of depreciation for the year 2017. The company uses the straight-line method and depreciates the building over 25 years and the truck over six years. Assume zero residual value for all assets. Round your intermediate calculations and answers to the nearest whole dollar. 3. Prepare a partial Balance Sheet to show how would the assets appear December 31, 2017