On January 1, the Matthews Band pays $66,400 for sound equipment. The band estimates it will use this equipment for four years and after four years it can sell the equipment for $1,000. Matthews Band uses straight-line depreciation but realizes at the start of the second year that this equipment will last only a total of three years. The salvage value is not changed. Compute the revised depreciation for both the second and third years. Book value at point of revision Remaining depreciable cost Depreciation per year for years 2 and 3 a. Paid $60,000 cash to replace a motor on equipment that extends its useful life by four years. b. Paid $300 cash per truck for the cost of their annual tune-ups. c. Paid $240 for the monthly cost of replacement filters on an air- conditioning system. d. Completed an addition to a building for $337,500 cash. 1. Classify the above transactions as either a revenue expenditure or a capital expenditure. 2. Prepare the journal entries to record transactions a and d. Complete this question by entering your answers in the tabs below Required 1 Required 2 Classify the above transactions as either a revenue expenditure or a capital Transaction a b d