Fly-by-Night is an international airline company. Its fleet includes Boeing 37s and McDonnell Douglas MD-83s and MD-80s. Assume that Fly-by-Nigh following expenditures related to these aircraft in 2017: 1. 757s, 747s, and New jet engines were installed on some of the MD-80s at a cost of The company paid $2.0 million to paint one-eighth of the fleet with the firm's to create a new public image. It intends to paint the re seven years. $25.0 million new colors mainder of the fleet over the next 2. 3. Routine maintenance and repairs on various aircraft cost $8.0 million. 4. Noise abatement equipment ("hush kits") was installed on the fleet of 737s to met FAA maximum allowable noise levels on takeoff. Equipment and installation $7.5 million. The avionics systems were replaced on the MD-83s. This will allow the aircraf used four more years than originally expected. cost 5. 6. The existing seats on all 747s were replaced with new, more comfortable seats at a cost $0.5 million. 7, The Jet engines on 50% of the Boeing 737s received a major overhaul at a cost of $5.0 million. As a result, the aircraft will be more fuel efficient. Required: 1. Which of these expenditures should Fly-by-Night capitalize? Why? 2. How might Fly-by-Night use expenditures like these to manage its earnings