Given the following list of outlays, indicate whether each is normally considered a capital expenditure or an operating

expenditure.

1. An outlay of $27,300 for a marketing research report.

The marketing research report is an operating expense or a capital venture?

2. A $275 outlay for an office machine.

The outlay for an office machine is an operating expense or a capital venture?

3. An outlay of $1,753,000 to purchase copyrights from an author.

The purchase of copyrights from an author is an operating expense or a capital venture?

4. A $177,000 investment in a portfolio of marketable securities.

The investment in a portfolio of marketable securities is an operating expense or a capital venture?

5. An outlay of $3,600,000 for a major research and development program.

The outlay for a major research and development program is an operating expense or a capital venture?

f. An outlay of $3,500 for a new machine tool.

The outlay for a new machine tool is an operating expense or a capital venture?

6. An outlay of $3,456,000 for a new building.

The outlay for a new building is an operating expense or a capital venture?

h. An initial lease payment of $12,475 for electronic point-of-sale cash register systems.

The initial lease payment is an operating expense or a capital venture?