8. Indicate for each of the following costs whether it should be expensed or capitalized when incurred.

Expense Capitalize

a. Replacement of a minor broken part on a machine.

b. Expenditure that increases the efficiency and effectiveness of a productive asset, but does not increase its salvage value.

c. Expenditure that increases the efficiency and effectiveness of a productive asset, and also increases its salvage value.

d. Cost of replacing a rotting wooden floor with new concrete floor