Depreciation Concept

Identify which of the following expenditures is considered as a capital expenditure that must be capitalized (depreciated): (a) Purchase land to build a warehouse at $300,000.

b) Purchased a copy machine at $15,000. (c) Installed a conveyor system at a cost of $55,000 to automate some part of production processes. (d) Painted the office building, both interior and exterior, at a cost of $22,000. (e) Repaved the parking lot at a cost of $25,000. (f) Installed a purified water fountain in the employee lounge at a cost of $3,000. (g) Purchased a spare part for a stamping machine at a cost of $3,800. (h) Paid $12,000 to lease a dump truck for six months. (i) Purchased a patent on an energy-saving device over five years at a cost of $30,000.