Categorize the given expenditures as a capital or revenue expenditure for Company SE with reasons.

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Chapter 6, Problem 25SEB

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Categorize the given expenditures as a capital or revenue expenditure for Company SE with reasons.

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(b) Classify the items listed below either as capital or revenue expenditure. Fittings partition in a new shop; Carriage on returns outwards; Cost of weighing machine in a retail shop; Repairs to office safe; Legal costs of collecting debts; Legal costs of building materials for a new office building; Carriage costs of building materials for a new office building; Purchase of an extra motor vehicle for distributor of soda and beer; Cost of paint for repainting the hospital wards from green to blue; Cost of paying for registration number plates of a new motor vehicle; Cost of replacing registration number plates of a motor vehicle;

For each of the following items, indicate if it is a Capital Expenditures (CE) or Revenue Expenditure (RE). 1. Constructed an addition to an existing building. 2. Repainted the president’s office. 3. Paid cash for improvements that will increase the number of products that the machine can produce per hour. 4. Replaced the tires on a company delivery vehicle. 5. Replaced a component of a machine that will increase the economic life of that machine.

Classify the items listed below either as capital or revenue expenditure. Fittings partition in a new shop; Carriage on returns outwards; Cost of weighing machine in a retail shop; Repairs to office safe; Legal costs of collecting debts; Legal costs of building materials for a new office building; Carriage costs of building materials for a new office building; Purchase of an extra motor vehicle for distributor of soda and beer; Cost of paint for repainting the hospital wards from green to blue; Cost of paying for registration number plates of a new motor vehicle; Cost of replacing registration number plates of a motor vehicle;