A piece of second$-$hand equipment was purchased on January $2^{nd},2020$ for $$4,000,000.$ A further $$200,000$ was immediately expended to bring it into operating condition. After ten months of continuous operation, lubricants, seals, fuses and small moving parts were purchased at a cost of $$400,000$ and used to work on the machine to reduce friction and engine noise. The $$4,000,000$ would be considered a capital expenditure:

True

False