963 Illustration 2. State which of the following items should be charged to capital and which to revenue : (1) 13,960 expended on dismantling, removing and reinstalling plant and machinery to a more convenient place. (2) 2.600 paid for removal of stock to new site. (3) Before removal to the new site a machine which stood in the books at 18.200 was found obsolete and sold as scrap for 6,000. A new machine was installed in its place at the new site at a cost of 32,000. (4) 2,200 paid for the erection of a new machine. (5) 25,000 paid on the repairing of the new factory. (6) *4,500 spent as lawyer's fee to defend a suit claiming that the firm's factory site belonged to the plaintiff. The suit was not successful. (7) A car engine's rings and pistons were changed at a cost of 7,500; this resulted in improvement of petrol consumption to 12 km. per lire; it had fallen from 15 km. to 8 km. (8) A building constructed in 1980 at a cost of 5,00,000 was written down by the year 2010 to 1.50,000: then it was demolished and a new building with 25% extra space was constructed at a cost of 20,00.000, including 50,000 for demolishing the old building