7.6

Expenditures After Acquisition The following expenditures were incurred during the year: Required: Classify the expenditures as either capital or revenue expenditures. a. Paid $4,000 for an overhaul of an automobile engine. b. Paid $20,000 to add capacity to a cellular phone company's wireless network. c. Paid $200 for routine maintenance of a manufacturing machine. d. Paid $10,000 to remodel an office building. e. Paid $300 for ordinary repairs