Chapter 11, Problem 2EA

Jada Company had the following transactions during the year:

• Purchased a machine for $500,000 using a long-term note to finance it

• Paid $500 for ordinary repair

• Purchased a patent for $45,000 cash

• Paid $200,000 cash for addition to an existing building

• Paid $60,000 for monthly salaries

• Paid $250 for routine maintenance on equipment

• Paid $10,000 for extraordinary repairs

If all transactions were recorded properly, what amount did Jada capitalize for the year, and what amount did Jada expense for the year?