Question
P11-1 (similar to) Classification of expendituresGiven the following list of outlays, indicate whether each is normally considered a capital expenditure or an operating expenditure. a.
P11-1 (similar to) Classification of expendituresGiven the following list of outlays, indicate whether each is normally considered a capital expenditure or an operating expenditure. a. An initial lease payment of $5,000 for electronic point-of-sale cash register systems. b. An outlay of $19,800 to purchase patent rights from an inventor. c. An outlay of $77,000 for a major research and development program. d. An investment of $78,300 in a portfolio of marketable securities. e. A $270 outlay for an office machine. f. An outlay of $1,600 for a new machine tool. g. An outlay of $238,300 for a new building. h. An outlay of $1,200 for a marketing research report. a. An initial lease payment of $5,000 for electronic point-of-sale cash register systems.(Select from the drop-down menu.) The initial lease payment is an operating expenditure a capital expenditure .
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