HW 7 # 2

Assume Karo Products, Inc., purchased conveyor-belt machinery. Requirement 1. Classify each of the following expenditures as a capital expenditure or an immediate expense related to machinery. a. Periodic lubrication after the machinery is placed in service b. Special reinforcement to the machinery platform c. Major overhaul to extend the machinery's useful life by five years ication after the machinery is placed in service prcement to the machinery platform iul to extend the machinery's useful life by five years