Assume Candy Corner, Inc., purchased conveyor-belt machinery. Classify each of the following expenditures as a capital expenditure or an immediate expense related to machinery (one thing to keep in mind when determining how to treat the item is if the machinery is up and running yet):

a. Sales tax paid on the purchase price

b. Transportation and insurance while machinery is in transit from seller to buyer

c. Purchase price

d. Installation

e. Training of personnel for initial operation of the machinery

f. Special reinforcement to the machinery platform

g. Income tax paid on income earned from the sale of products manufactured by the machinery

h. Major overhaul to extend the machinerys useful life by three years

i. Ordinary repairs to keep the machinery in good working order

j. Lubrication of the machinery before it is placed in service

k. Periodic lubrication after the machinery is placed in service

Just link your response to this one and label the item you are answering by changing your subject line. Please do one at a time. Please do in order (by linking your response to the one before it, after my initial post each week, there is no reason to use the response link at the very top, thanks). Hint: Many of these are capital expenditures, which means they would be part of the cost of the long-term asset.

Thanks.