The company's effective income tax rate is 3o%. Hear the end of sol-IS, a variety of expenditures were made to overhaul the companfs manufacturing equipment. None of these expenditures exceeded STSD, the materiality;P threshold re company has set for the capitalization of any such expenditure. Even though the overhaul: extended the service life of the equipment, the expenditures were expensed, not capitalized. Iohn Henderson, the company's controller, is worried ahout the treatment of the overhaul expenditures. Even though no individual expenditure exceeded the Ego materialityr threshold, total expenditures were $yo,ooo. Required: Should the overhaul expenditures be capitalized or expensed'i