1. Paid $40,000 cash to replace a motor on equipment that extends its useful life by four years.
2. Paid $200 cash per truck for the cost of their annual tune-ups.
3. Paid $175 for the monthly cost of replacement filters on an air-conditioning system.
4. Completed an addition to a building for $225,000 cash.

1. Classify the above transactions as either a revenue expenditure or a capital expenditure. 2. Prepare the journal entries to record the four transactions from part 1.