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Urgent help on accounting homework please? Elton Enterprises has recently upgraded its delivery truck. The various expenditures related to the upgrades occurred at the end

Urgent help on accounting homework please?

Elton Enterprises has recently upgraded its delivery truck. The various expenditures related to the upgrades occurred at the end of year 2 and are as follows:

Item and amounts Capital expenditure/Operating expense
1) Oil changes, $20
2) All four tires on truck replaced, $800
3) Engine replacement, $900
4) Changed truck colors from blue to green, $500
5) Replaced brakes, $400

Required:

1) Determine whether the expenditure is a capital improvement or ordinary operating expense.

2) Suppose the delivery truck with an original cost of $35,000 was being depreciated using straight line depreciation over 5 years and was expected to have a $3,000 residual value, however the upgrades are expected to increase the useful life from 5 years to 7 years. Based on the upgrades above, what is the revised depreciation expense for years 3 through 7?

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