Indicate whether the items (a) through (h) are capital or revenue expenditures in the spaces provided above.
Question:
Martinez Company purchased a machine on January 1, 2014. In addition to the purchase price paid, the following additional costs were incurred:
______ (a) sales tax paid on the purchase price,
______ (b) transportation and insurance costs while the machinery was in transit from the seller,
______ (c) personnel training costs for initial operation of the machinery,
______ (d) annual city operating license,
______ (e) major overhaul to extend the life of the machinery,
______ (f) lubrication of the machinery gearing before the machinery was placed into service,
______ (g) lubrication of the machinery gearing after the machinery was placed into service, and
______ (h) installation costs necessary to secure the machinery to the building flooring.
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Related Book For
Intermediate accounting
ISBN: 978-0077647094
7th edition
Authors: J. David Spiceland, James Sepe, Mark Nelson
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