Quick Study Q$ 9- Cost of PPE LO1 Sydney Lanes, a local bowling alley, installed automatic scorekeeping equipment. The electrical work required to prepare for the installation was. $18,000, The invoice price of the equipment was $180,000. Additional costs were $3,000 for delivery and $600 for insurance during transportation. During the instal- lation, a component of the equipment was damaged because it was carelessly left on a lane and hit by the automatic lane cleaning machine. The cost of repairing the component was $2,250. What is the cost that should be capitalized of the automatic scorekeeping equipment? 9 Revenue and capital expenditures Lol 1. Classify the following expenditures as revenue (R) or capital expenditures (C) 0 a. The monthly replacement cost of filters on an air conditioning system, $120. b. The cost of replacing a compressor for an ice cream firm's refrigeration system that extends the estimated life of the system by four years, $40,000. c. The cost of annual tune-ups for delivery trucks, $200. d. The cost of $175,000 for an addition of a new wing on an office building. Prepare the journal entry to record each of the above (assume all transactions occurred on March 15, 2017, and were on account). 2