( Capital versus Revenue Expenditures On January 1, 2015, Jose Company purchased a building for $200,000 and a delivery truck for $20,000. The following expenditures have been incurred during 2017 The building was painted at a cost of $5,000. To prevent leaking, new windows were installed in the building at a cost of $10,000. To improve production, a new conveyor system was installed at a cost of $40,000. The delivery truck was repainted with a new company logo at a cost of $1,000. To allow better handling of large loads, a hydraulic lift system was installed on the truck at a cost of $5,000. The truck's engine was overhauled at a cost of $4,000. Required 3. Determine which of those costs should be capitalized. Assume that all costs were incurred on January 1, 2017. Select "Yes" the cost should be capitalized; other select "No" The building was painted at a cost of $5,000. To prevent leaking, new windows were installed in the building at a cost of $10,000 To improve production, a new conveyor system was installed at a cost of $40,000. The delivery truck was repainted with a new company logo at a cost of $1,000. To allow better handling of large loads, a hydraulic lift system was installed on the truck at a cost of $5,000 The truck's engine was overhauled at a cost of $4,000 Identify and anal the total effect of the capitale costs on January 1, 2017 related to the building Adivity If a financial statement item is not affected, select "No Entry and leave the amount box blank, the effect on a financial statement tem negative, a decrease, be sure to enter the answer with a minus sign Assets Building Delivery Truck X Balance Sheet Liabilities Stockholders Equity Identify and analyse the total effect of the capitalized costs on January 1, 2017 related to the delivery truck Operating X Activity Accounts Balance Sheet and Income Statement X Revenues Income Statement Expenses Net Income How does this entry affect the accounting equation? If a financial statement item is not affectent, select "No Entry and leave the amount box blank. If the effect on a financial statement tem is negative, ie, decrease, be sure to enter the newer with a minus sign Assets Balance Sheet Stockholders' Equity Revenues Net Income 2. Determine the amount of depreciation for the year 2017. The company uses the straight-line method and depreciates the building over 25 years and the truck over six years. Assume ser residual value for all assets. Round your interme 2017 Depreciation Asset Truck ) Calculate depreciation for the appropriate assets. Set up T account for accumulated depreciation. Determine book value at and of 2017. Record depreciation by increasing the expense account. Accounts Calculate depreciation the appropriate assets. Set up T account for accumulated depreciation Determine book value at end of 2017, Record depreciation by increasing the expense account How does this entry affect the accounting equation? If a financial statement item is not affected, select "No Entry and leave the amount bank. If the effect on a financial statement item is negative, decrease, be sure to enter the a Stockholders' Equity Revenues Income Statement Expenses