A restaurant purchases some used kitchen equipment. For each of the following, explain whether the expenditure would be capitalized or expensed:

a. The equipment cost $58,000, plus $2,900 in GST. $30,000 was paid in cash with the remainder due in 90 days.

b. Some of the equipment required repairs before it could be used. The repairs cost

$9,200.

c. Soon after the equipment was delivered, some was damaged because some kitchen staff didn’t know how to use it properly. Additional repairs costing $2,000 were required.

d. The restaurant had to hire people to help rearrange the kitchen so the new equipment would fit. The work cost $2,500.