M9-3 Deciding Whether to Capitalize or Expense [LO 9-2, LO 9-6] For each of the following items, select the correct letter to show whether the expenditure should be capitalized (C) or expensed (E). Transactions 1. Purchased a machine, $70,000; gave long-term note. 2. Paid $600 for ordinary repairs. 3. Purchased a patent, $45,300 cash. 4. Paid cash, $200,000, for addition to old building. 5. Paid $20,000 for monthly salaries. 6. Paid $250 for routine maintenance. 7. Paid $16,000 for extraordinary repairs