Lime $($formerly known as LimeBike$),$ located in San Mateo, California, is a startup founded in $2017.$ Its mission is to make shared bicycles accessible and affordable. The company has taken the basic idea of shared bicycles and eliminated the need to return the bike to a docking station, which may not be near the cyclist's destination. Lime charges $$1$ per $30$ minutes of riding, or $$0\mathrm{.}50$ per ride for students.

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Read the requirements.

Requirement $1.$ For each of the following items, identify whether the cost of the item would be expensed or capitalized at Lime:

Capitalized or

Item

Expensed?

a$.$ Customized bikes from Trek and Specialized

b$.$ Development costs of Lime's app for locating, paying, and returning bikes

c$.$ Salary of the salesperson who works to get cities to adopt Lime's program

d$.$ Replacement tires for bikes

e$.$ Routine bike maintenance including chain lubrication, brake pad replacement, and drivetrain cleaning

f$.$ Electricity and other utilities in the company's administrative offices