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American Golf Corporation operates over 170 golf courses throughout the country. For each of the following items, enter the correct letter to show whether the
American Golf Corporation operates over 170 golf courses throughout the country. For each of the following items, enter the correct letter to show whether the cost should be capitalized ( C ) or expensed (E). ___ Purchased a golf course in Orange County, California. ___ Paid a landscaping company to clear one hundred acres of land on which to build a new course. ___ Paid a landscaping company to apply fertilizer to the fairways on its Coyote Hlls Golf Course. ___ Hired a building maintenance company to build a 2,000 square foot addition on a clubhouse. ___ Hired a building maintenance company to replace the locks on a clubhouse and equipment shed. ___ Paid an advertising company to create a campaign to build goodwill. 9. For each of the following items, enter the correct letter to the left to show whether the expenditure should be capitalized ( C ) or expensed ( E ). ___ Paid $600 for ordinary repairs. ___ Paid $16,000 for extraordinary repairs. ___ Paid cash, $200,000, for addition to old building ___ Paid $250 for routine maintenance ___ Purchased a machine, $70,000; gave long-term note. ___ Purchased a patent, $45,300 cash
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