a. Purchase price. b. Ordinary recurring repairs to keep the machinery in good working order. c. Lubrication before machinery is placed in service. d. Periodic lubrication after machinery is placed in service. e. Major overhaul to extend useful life by three years. f. Sales tax paid on the purchase price. g. Transportation and insurance while machinery is in transit from seller to buyer. h. Installation. i. Training of personnel for initial operation of the machinery. Classify each of the expenditures as a capital expenditure or a revenue expenditure related to machinery.

a. Purchase price. b. Ordinary recurring repairs to keep the machinery in good working order. c. Lubrication before machinery is placed in service. d. Periodic lubrication after machinery is placed in service. e. Major overhaul to extend useful life by three years. f. Sales tax paid on the purchase price. g. Transportation and insurance while machinery is in transit from seller to buyer. h. Installation. i. Training of personnel for initial operation of the machinery. Classify each of the expenditures as a capital expenditure or a revenue expenditure related to machinery.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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