On June 1, Puff's Trucking Company paid $3,000 to overhaul the engine on a delivery truck to allow it to be used for two additional years. It also paid $75 for an oil change on the truck. Which of the following statements is true?
A) The $3,000 is a capital expenditure and the $75 is an expense.
B) The $3,000 is an expense and the $75 is a capital expenditure.
C) Both items are capital expenditures.
D) Both items are expenses.
Correct Answer:
Verified
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