Financial accounting 16th Edition by Jan Williams,Susan Haka,Mark Bettner ,Joseph Carcello

تمرين 52

Identify the following expenditures as capital expenditures or revenue expenditures:
a.mmediately after acquiring a new delivery truck, paid $260 to have the name of the store and other advertising material painted on the vehicle.
b.ainted delivery truck at a cost of $450 after two years of use.
c.urchased new battery at a cost of $40 for two-year-old delivery truck.
d.nstalled an escalator at a cost of $17,500 in a three-story building that had been used for some years without elevators or escalators.
e.urchased a pencil sharpener at a cost of $15.00.
f.riginal life of the delivery truck had been estimated at four years, and straight-line depreciation of 25 percent yearly had been recognized.fter three years' use, however, it was decided to recondition the truck thoroughly, including replacing the engine.