Please help me understand the difference between capitalize and expensed expenditures.

For (b), please explain how to get $2292 as an answer. Thank you.

Determine the proper treatment of each of the following expenditures: a. Zoe purchases land costing $8,000. During the current year, she pays $2,000 to have utilities and sewer lines installed on the property. Zoe also pays $600 in interest on the loan used to obtain the land and $300 in property taxes on the land. The cost of the land: capitalized The cost of the utilities and sewer lines: capitalized The interest on the loan (assume used in business): expensed The property taxes: expensed Feedback Check My Work To be depreciable or amortizable, the asset must have a determinable life or period of usefulness to which the cost can be attributed b. On August 2, Carruth Corporation pays $11,000 for a 2-year fire insurance policy on its manufacturing facility. Round your answer to nearest dollar. The fire insurance policy is a capital expenditure . Carruth can deduct $2,292 in the current year. Feedback Check My Work Correct c. The Freeborn Partnership purchases a rental property costing $125,000. Before it rents out the building, Freeborn repaints it at a cost of $2,000 and spends $1,200 on minor repairs. After the property is rented, a pipe bursts, requiring $2,000 in repairs. Freeborn must capitalize the $125,000 purchase price of the property. The $2,000 painting should be capitalized The $1,200 repair cost should be capitalized . The $2,000 pipe burst repair cost should be expensed