Identify the following expenditures as capital expenditures or revenue expenditures. 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. Purchased a pencil sharpener at a cost of $15.00 Original life of delivery truck had been estimated at four years, and straight-line depreciation of 25 percent yearly had been recognized. After three years use, however, it was decided to recondition the truck thoroughly, including replacing the engine.

Identify the following expenditures as capital expenditures or revenue expenditures. 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. Purchased a pencil sharpener at a cost of $15.00 Original life of delivery truck had been estimated at four years, and straight-line depreciation of 25 percent yearly had been recognized. After three years use, however, it was decided to recondition the truck thoroughly, including replacing the engine.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter11: Long-term Assets

Section: Chapter Questions

Problem 4PA: During the current year, Arkells Inc. made the following expenditures relating to plant machinery. ...

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