Problem 1 (4 points)

For each of the following purchases, does the purchase represent a capital or a revenue expenditure?

	C OR R
Complete remodeling of a restaurant dining room at a cost of $80,000 Purchase of a pizza oven at a cost of $18,000 Purchase of a dozen pencil sharpeners at a cost of $65 Overhaul of the engine on a tour bus at a cost of $5,000, extending the life of the bus by five years. Purchase of a computer system at a cost of $35,000 Purchase of gas for a hotels shuttle bus.