One of the most difficult problems facing an accountant is the determination of which expenditures should be capitalized and which should be immediately expensed. What position would you take in each of the following instances?
(a) Painting partitions in a large room recently divided into four sections.
(b) Labor cost of tearing down a wall to permit extension of assembly line.
(c) Replacement of motor on a machine. Life used to depreciate the machine is eight years. The machine is four years old. Replacement of the motor was anticipated when the machine was purchased.
(d) Cost of grading land prior to construction.
(e) Assessment for street paving.
(f) Cost of tearing down a previously occupied old building in preparation for new construction; old building is fully depreciated.