Enter True/false to each statement in the space below 4. Kareem is in charge of accounting for the purchase of equipment at Cal Works, Inc. The company has a policy that all expenditures greater than $1,000 must be capitalized. Steve is under pressure from his supervisor to minimize capital expenditures less than $1,000 to keep earnings as high as possible. Steve decides to take two separate expenditures - one for $600 and the other for $900 - and he groups them into one expenditure so that the capitalization rules apply. Steve's actions can be characterized as loyal to the company's best interests