E$9\mathrm{.}24($LO $4)($Analysis of Subsequent Expenditures$)$ Plant assets often require expenditures subsequent to acquisition. It is important that they be accounted for properly. Any errors will affect both the balance sheets and income statements for a number of years.

Instructions

For each of the following items, indicate whether the expenditure should be capitalized $($C$)$ or expensed $($E$)$ in the period incurred.

$\_\_\_\_\_\_\_\_\_\_$Improvement$.$

$\_\_\_\_\_\_\_\_\_\_$Replacement of a minor broken part on a machine.

$\_\_\_\_\_\_\_\_\_\_$Expenditure that increases the useful life of an existing asset.

$\_\_\_\_\_\_\_\_\_\_$Expenditure that increases the efficiency and effectiveness of a productive asset but does not increase its salvage value.

$\_\_\_\_\_\_\_\_\_\_$Expenditure that increases the efficiency and effectiveness of a productive asset and increases the asset$$s salvage value.

$\_\_\_\_\_\_\_\_\_\_$Expenditure that increases the quality of the output of the productive asset.

$\_\_\_\_\_\_\_\_\_\_$Improvement to a machine that increased its fair market value and its production capacity by $30\%$ without extending the machine$$s useful life.

$\_\_\_\_\_\_\_\_\_\_$Ordinary repairs.