M9-3 (Static) Deciding Whether to Capitalize or Expense [LO 9-2, LO 9-6] Required: For each of the following items, select whether the cost should be capitalized or expensed. 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