My text book is Hospitality Industry Financial Accounting (4th edition). I am in chapter 11 -- PROPERTY, EQUIPMENT, and OTHER ASSETS now. Problem 1 asks that For each of the following purchases, does the purchase represent a capital or a revenue expenditure? a. Complete remodeling of a restaurant dining room at a cost of $80,000. b. Repainting the exterior of a delivery truck at a cost of $500. c. Purchase of a pizza oven at a cost of $18,000. d. Purchase of a dozen pencil sharpeners with a life of ten years at a total cost of $65. e. Overhaul of the engine on a tour bus at a cost of $5,000, extending the life of the bus by five years. f. Purchase of a computer system at a cost of $35,000.
My text book is Hospitality Industry Financial Accounting (4th edition). I am in chapter 11 -- PROPERTY, EQUIPMENT, and OTHER ASSETS now.
Problem 1 asks that For each of the following purchases, does the purchase represent a capital or a revenue expenditure?
a. Complete remodeling of a restaurant dining room at a cost of $80,000.
b. Repainting the exterior of a delivery truck at a cost of $500.
c. Purchase of a pizza oven at a cost of $18,000.
d. Purchase of a dozen pencil sharpeners with a life of ten years at a total cost of $65.
e. Overhaul of the engine on a tour bus at a cost of $5,000, extending the life of the bus by five years.
f. Purchase of a computer system at a cost of $35,000.
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