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Acme Corporation, Inc (Acme) has determined that the roof on the manufacturing building where it manufactures the cookies that the company sells is in urgent

Acme Corporation, Inc (Acme) has determined that the roof on the manufacturing building where it manufactures the cookies that the company sells is in urgent need of repairs because there are many leaks in the roof. The estimated cost to complete the repairs will be around $2 million. Would the expenditure of repairing the roof be considered a capital expenditure or an operating expenditure? Please explain.

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