An accounting firm purchases used office furniture for its support staff. For each of the following, would the expenditure be capitalized or expensed? Explain.

a. The office furniture cost $18,000.

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

$4,000.

c. Soon after the furniture was delivered, some was damaged because of mishandling by the accounting firm’s staff. Additional repairs costing $1,300 were required.

d. The accounting firm had to hire people to help rearrange the furniture to accommodate the new furniture. The work cost $1,500.