expenditures as a capital expenditure
Requirement

1. Classify each ofthe expenditures as a capital expenditure or an expense related to machinery:

Expenditure Classification
(a) Purchase price. [L]
(b) Ordinary recurring repairs to keep the machinery in good working order. l
(c) Lubrication before machinery is placed in service. l
(d) Periodic lubrication after machinery is placed in service. l
(e) Major overhaul to extend useful life by three years. l
(f) Sales tax paid on the purchase price. l
(g) Transportation and insurance while machinery is in transit from seller to buyer. l
(h) Installation.
(i) Training of personnel for initial operation ofthe machinery. l
(j) Income tax paid on income earned from the sale of products manufactured by the machinery. l
Choose from any drop-down list, then click Check Answer.

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expenditures as a capital expenditure
Requirement

1. Classify each ofthe expenditures as a capital expenditure or an expense related to machinery:

Expenditure Classification
(a) Purchase price. [L]
(b) Ordinary recurring repairs to keep the machinery in good working order. l
(c) Lubrication before machinery is placed in service. l
(d) Periodic lubrication after machinery is placed in service. l
(e) Major overhaul to extend useful life by three years. l
(f) Sales tax paid on the purchase price. l
(g) Transportation and insurance while machinery is in transit from seller to buyer. l
(h) Installation.
(i) Training of personnel for initial operation ofthe machinery. l
(j) Income tax paid on income earned from the sale of products manufactured by the machinery. l
Choose from any drop-down list, then click Check Answer.

Leave a Reply

Your email address will not be published. Required fields are marked *