On June 1, Roadway'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 $7,100 to change the storage capacity of the truck so that it could haul more merchandise. Which of the following statements is TRUE? A. The $3,000 is a capital expenditure and the $7,100 is an expense. B. The $3,000 is an expense and the $7,100 is a capital expenditure. C. Both items are capital expenditures. D. Both items are expenses. thanks for hple appreaicated it yir

On June 1, Roadway'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 $7,100 to change the storage capacity of the truck so that it could haul more merchandise. Which of the following statements is TRUE? A. The $3,000 is a capital expenditure and the $7,100 is an expense. B. The $3,000 is an expense and the $7,100 is a capital expenditure. C. Both items are capital expenditures. D. Both items are expenses. thanks for hple appreaicated it yir

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter2: Income Tax Concepts

Section: Chapter Questions

Problem 59P

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Question

The $3,000 is a capital expenditure and the $7,100 is an expense.

The $3,000 is an expense and the $7,100 is a capital expenditure.

Both items are capital expenditures.

Both items are expenses.

thanks for hple

appreaicated it

yir

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On June 1, Roadway'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 $7,100 to change the storage capacity of the truck so that it could haul more merchandise. Which of the following statements is TRUE? A. The $3,000 is a capital expenditure and the $7,100 is an expense. B. The $3,000 is an expense and the $7,100 is a capital expenditure. C. Both items are capital expenditures. D. Both items are expenses. appreciate the help thanks
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