Sam Limited incurred the following expenditure during the year 201617. Please state whether each of them should

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Sam Limited incurred the following expenditure during the year 2016–17. Please state whether each of them should be treated as operating expenses for the year or capitalized as an asset. 

1. A calculator was purchased for office use for ₹ 400. 

2. Incurred ₹ 50,000 towards repair of a machine which had a major breakdown. 

3. Incurred ₹ 675,000 for overhauling a second hand machine recently purchased. 

4. A FMCG company sponsored a cricket series incurring ₹ 50 million towards the sponsorship fees. It is expected that it will enhance the brand value of the company. 

5. Paid ₹ 1 million to an author for buying the copyrights of his new book. 

6. Paid ₹ 100,000 towards insurance of a new machine while it was being transported to the factory premises for installation. 

7. Incurred ₹ 700,000 for replacing a major part that has become faulty. It is expected that the new part will also result in increasing the capacity of the machine by 20%. 

8. Expenses incurred by a pharmaceutical company on research activities.

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