Matino Corporation needs a warehouse. On January 1, 20A1, it entered into a lease contract with Matibay Corporation with the following terms: The rentals were payable every January 1, in five annual equal installments. During 20A1, Matino incurred the following expenditures in connection with the leased warehouse: Ordinary repairs neither materially add to the value of the property nor prolonged its life. However, the replacement of the windows and roofs, which were incurred on July 1,20A1, arrested the deterioration of the property but it maintained its life. The remaining life of the warehouse is 8 years. In 20A2, Matino constructed leasehold improvements on said leased warehouse for P300,000. The construction was completed on March 31, 20A2. Said improvements were utilized starting April 1, 20A2 with useful life of 7 years. Required: 1. Determine the deductible expense for the years ended December 31,20A1 and 20A2. Identify the nature of the expense. 2. Determine the capital expenditures for the years ended December 31, 20A1 and 20A2. Explain why these are non-deductible