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Capitalizing versus expensing For each of the following expenditures, indicate the type of account (asset or expense) in which the expenditure should be recorded. Explain your answers. a. $15,000...

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Capitalizing versus expensing For each of the following expenditures, indicate the type of account (asset or expense) in which the expenditure should be recorded. Explain your answers.

a. $15,000 annual cost of routine repair and maintenance expenditures for a fleet of delivery vehicles.

b. $60,000 cost to develop a coal mine, from which an estimated 1 million tons of coal can be extracted.

c. $124,000 cost to replace the roof on a building.

d. $70,000 cost of a radio and television advertising campaign to introduce a new product line.

e. $4,000 cost of grading and leveling land so that a building can be constructed.

Answered Same Day Dec 29, 2021

Solution

David answered on Dec 29 2021
124 Votes
Capitalizing versus expensing for each of the following expenditures, indicate the
type of account (asset or expense) in which the expenditure should be recorded.
Explain your answers.
A $15,000 annual cost of routine repair and maintenance expenditures for a fleet
of delivery vehicles.
The annual cost of routine repair and maintenance expenditure for a fleet of delivery
vehicles is expenses because the repair is expected to occur every year so...
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