Question
Identify the following expenditures as capital expenditures or revenue expenditures: a. Immediately after acquiring a new delivery truck, paid $260 to have the name of
Identify the following expenditures as capital expenditures or revenue expenditures:
a.Immediately after acquiring a new delivery truck, paid $260 to have the name of the store and other advertising material painted on the vehicle.
b.Painted delivery truck at a cost of $450 after two years of use.
c.Purchased new battery at a cost of $40 for two-year-old delivery truck.
d.Installed an escalator at a cost of $17,500 in a three-story building that had been used for some years without elevators or escalators.
e.Purchased a pencil sharpener at a cost of $15.
f.Original life of the delivery truck had been estimated at four years, and straight-line depreciation of 25% yearly have been recognized. After three years use, however, it was decided to recondition the truck thoroughly, including replacing the engine.
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