Exercise 1. The following expenditures relating to plant assets were made by Spaulding Company during the first 2 months of 201. Determine which of these would be considered a Capital Expenditure according to the cost principle and which would be considered a Revenue Expenditure. 1. Paid $5,000 of accrued taxes at the time the plant site was acquired. 2. Paid $200 insurance to cover possible accident loss on new factory machinery while the machinery was in transit. 3. Paid $75 for the annual motor vehicle license fee on the new truck. 4. Incurred $17,500 for parking lots and driveway paving on new plant site. 5. Paid $900 for a one-year accident insurance policy on new delivery truck. 6. Incurred $250 for company name and logo to be painted on the side of the new delivery truck. 7. Incurred $8,000 for installation of new factory equipment. 8. Paid $850 sales tax on the new delivery truck