FINANCIAL ACCOUNTING A company has carried out a number of transactions connected with its non-current assets during the year. Indicate whether they should be recorded as capital or revenue expenditure. 8. Capital Revenue Purchase of a machine for $24,000. Upgrade of a machine to expand its capacity Painting of a machine A company buys a motor car to be owned by the business and used by a director. Which TWO of the following should be capitalised? A. Basic cost of the car B. Cost of the road tax C. Cost of the petrol D. Cost of the added extras in the car such as digital radio and alloy wheels 10. Which one of the following statements about intangible non-current assets is correct? The value of purchased goodwill is always agreed before the sale is complete. Purchased goodwill is the excess of the purchase consideration paid for a business over the fair value of the net assets acquired A. B. Plant and machinery, fixtures and fittings are all examples of intangible non- current assets Goodwill is an example of an intangible non-current asset and is amortised each year in the financial statements C. D