Identify the following expenditures as capital expenditures or revenue expenditures:a. Immediately after acquiring a new delivery truck, paid $195 to have the name of the store andother advertising material painted on the vehicle.b. Painted delivery truck at a cost of $450 after two years of use.c. Purchased new battery at a cost of $40 for two-year-old delivery truck.d. Installed an escalator at a cost of $17,500 in a three-story building that had been used for someyears without elevators or escalators.e. Purchased a pencil sharpener at a cost of $15.00. f. Original life of the delivery truck had been estimated at four years, and straight-line deprecia-tion of 25 percent yearly had been recognized. After three years’ use, however, it was decided to recondition the truck thoroughly, including adding a new engine.
Identify the following expenditures as capital expenditures or revenue expenditures:
a. Immediately after acquiring a new delivery truck, paid $195 to have the name of the store and
other advertising material painted on the vehicle.
b. Painted delivery truck at a cost of $450 after two years of use.
c. Purchased new battery at a cost of $40 for two-year-old delivery truck.
d. Installed 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. Purchased a pencil sharpener at a cost of $15.00.
f. Original life of the delivery truck had been estimated at four years, and straight-line deprecia-
tion of 25 percent yearly had been recognized. After three years’ use, however, it was decided
to recondition the truck thoroughly, including adding a new engine.
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