Retrograde Delivery Co. incurred the following costs related to trucks and vans used in operating its delivery
Question:
Retrograde Delivery Co. incurred the following costs related to trucks and vans used in operating its delivery service:
1. Changed the oil and greased the joints of all the trucks and vans.
2. Changed the radiator fluid on a truck that had been in service for the past four years.
3. Installed a hydraulic lift to a van.
4. Installed security systems on four of the newer trucks.
5. Overhauled the engine on one of the trucks purchased four years ago.
6. Rebuilt the transmission on one of the vans that had been driven 50,000 miles.
The van was no longer under warranty.
7. Removed a two-way radio from one of the trucks and installed a new radio with Bluetooth capability.
8. Repaired a flat tire on one of the vans.
9. Replaced a truck’s suspension system with a new suspension system that allows for the delivery of heavier loads.
10. Tinted the back and side windows of one of the vans to discourage theft of contents.
Classify each of the costs as a capital expenditure or a revenue expenditure.
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