Identify each of the following items as either a capital expenditure (C), expense on the income statement (E), or neither (N):
Type of Expenditure
C Capital expenditure
E Expensed on income statement
N Neither capital expenditure or expensed
1. Purchased a computer and peripheral equipment for $25,600 cash.
2. Paved a parking lot on leased property for $100,000.
3. Repaired plumbing in main plant, paying $150,000 cash.
4. Purchased equipment for new manufacturing plant, $5,000,000; financed with long-term note.
5. Paid $50,000 in cash for installation of equipment in (4).
6. Paid $15,000 maintenance on equipment in (4) during its first year of use.
7. Paid $150,000 to tear down old building on new plant site.
8. Paid dividends of $50,000.
9. Paid interest on construction note for new plant building, $550,000.
10. Paid property taxes of $50,000 for the first year the new building is occupied.

  • CreatedJuly 25, 2014
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