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Classification of expenditures Given the following list of outlays, indicate whether each is normally considered a capital expenditure or an operating expenditure. Explain your answers.

Classification of expenditures

Given the following list of outlays, indicate whether each is normally considered a capital expenditure or an operating expenditure. Explain your answers.

a. An initial lease payment of $5,000 for electronic point-of-sale cash register systems

b. An outlay of $20,000 to purchase patent rights from an inventor

c. An outlay of $80,000 for a major research and development program

d. An $80,000 investment in a portfolio of marketable securities

e. A $300 outlay for an office machine

f. An outlay of $2,000 for a new machine tool

g. An outlay of $240,000 for a new building

h. An outlay of $1,000 for a marketing research report

Please provide your own work. Thanks.

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