On June $1,$ Roadway's Trucking Company paid $$9000$ to overhaul the engine on a delivery

truck to allow it to be used for two additional years. It also paid $$8000$ to change the storage

capacity of the truck so that it could haul more merchandise. Which of the following

statements is TRUE?

Both items are expenses.

The $$9000$ is an expense and the $$8000$ is a capital expenditure.

The $$9000$ is a capital expenditure and the $$8000$ is an expense.

Both items are capital expenditures.