For each of the following items, indicate whether the costs should be capitalized or expensed immediately under GAAP. For each answer provide a short sentence as to the reason the cost is capitalized or immediately expensed.

1. Equipment with a 5-year life is purchased for $32,000 for a specific R&D project. The equipment has no alternative use.
2. Purchased a customer list from another company for $100,000.
3. Spent $200,000 to develop a new software product.
4. Paid $10,000 for routine maintenance and lubrication of equipment.
5. Paid $22,000 to overhaul a manufacturing machine. The overhaul will extend the machines useful life by 2 years.
6. Paid $40,000 to install new equipment in a production line that will enhance the marketability of the product.
7. Purchased a license agreement for $500,000.