(Learning Objective 2: Distinguish a capital expenditure from an immediate expense)Identify each of the following items as a capital expenditure, an immediate expense, or neither.1. Constructed a new parking lot on leased property for $300,000.2. Paid property taxes of $75,000 for the first year a new administrative services building wasoccupied.3. Paid dividends of $40,000.4. Paid interest on a six-month note payable that financed the construction of a new plantbuilding, $550,000.5. Purchased equipment for a new manufacturing plant, $6,000,000.6. Paid $90,000 for the installation of the equipment in (5.)7. Repaired plumbing in existing manufacturing plant, paying $27,000.8. Paid $148,000 to tear down an old building on a new manufacturing plant site.9. Purchased new network servers for $29,000.10. Paid maintenance costs of $31,000 on the equipment in (5) during its first year of use
(Learning Objective 2: Distinguish a capital expenditure from an immediate expense)
Identify each of the following items as a capital expenditure, an immediate expense, or neither.
1. Constructed a new parking lot on leased property for $300,000.
2. Paid property taxes of $75,000 for the first year a new administrative services building was
occupied.
3. Paid dividends of $40,000.
4. Paid interest on a six-month note payable that financed the construction of a new plant
building, $550,000.
5. Purchased equipment for a new manufacturing plant, $6,000,000.
6. Paid $90,000 for the installation of the equipment in (5.)
7. Repaired plumbing in existing manufacturing plant, paying $27,000.
8. Paid $148,000 to tear down an old building on a new manufacturing plant site.
9. Purchased new network servers for $29,000.
10. Paid maintenance costs of $31,000 on the equipment in (5) during its first year of use
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