Which of the following are capital, as opposed to revenue, expenses and what is the correct accounting to record the depreciation charge?

1) The repair of a machine currently used in the production process that has broken down

2) The cost of an extension to a factory building, which doubles the size of the production

area

3) The cost of installing a new machine in a factory

A 2 only

B 1 and 2 only

C 2 and 3 only

D 1, 2 and 3

DR Depreciation expense

CR Accumulated depreciation

B)

DR Accumulated depreciation

CR Depreciation expense

C)

DR Depreciation expense

CR Property