During the year, Graham International made the following expenditures relating to plant, machinery, and equipment:

1. Completed regularly scheduled repairs at a cost of \($250,000\).

2. Overhauled several stamping machines at a cost of \($500,000\) to improve production efficiency.

3. Replaced a broken cooling pump on a 100-ton press at a cost of \($25,000\).

Required

Identify which expenditures should be expensed as a maintenance expense or capitalized as a betterment outlay.