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Exercise 10-3 Classify each of the following expenditures related to the cost of a machine: Meas distin repair Repair or Cost or Betterment Expense Other

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Exercise 10-3 Classify each of the following expenditures related to the cost of a machine: Meas distin repair Repair or Cost or Betterment Expense Other a. Purchase price b. Provincial sales tax paid on the purchase price c. Transportation and insurance while the machine is in transport from seller to buyer d. Installation e. Training of personnel for initial operation of the machine f. Special reinforcement to the machine platform g. Income tax paid on income earned from the sale of products manufactured by the machine life by three years in good working order service h. Major overhaul to extend the machine's useful i. Ordinary recurring repairs to keep the machine j. Lubrication before the machine is placed in k. Periodic lubrication after the machine is placed l. GST on the purchase price in service

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