The Wilson Corporation incurs the following expenses. Explain whether the following expenses should be capitalized or deducted in the current period.
a.Paid $2,500 to blacktop a gravel parking lot.
b.Paid $1,900 for new tires on the truck.
c.Paid $3,000 for a new fire and security alarm system for the factory.
d.Paid $6,250 to paint the interior and exterior of the office and factory building that it just acquired.
e.Paid $1,200 for a new compressor for the factory's central air conditioning system.

Question

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The Answer of The Wilson Corporation incurs the following expenses. Explain whether the following expenses should be capitalized or deducted in the current period.
a.Paid $2,500 to blacktop a gravel parking lot.
b.Paid $1,900 for new tires on the truck.
c.Paid $3,000 for a new fire and security alarm system for the factory.
d.Paid $6,250 to paint the interior and exterior of the office and factory building that it just acquired.
e.Paid $1,200 for a new compressor for the factory's central air conditioning system.

The Wilson Corporation Incurs the Following Expenses