Wired Productions Ltd. uses its website for sales and client information. Costs incurred last year include:

Expenditure                                                                                                                      Amount

Depreciation of computer equipment, connection, and utility cost .................      $35,000

Website maintenance and concept improvements .............................................       22,000

Graphics .....................................................................................................................      12,000

Creation of content, expected to be valid for three years ..................................       24,000

Required:

Should each item above be expensed or capitalized?