Problem $7-4$A $($Static$)$ Record expenditures after acquisition $($LO$7-3)$

Several years ago, Health Services acquired a helicopter for use in emergency situations.

Required:

Select whether Health Services should capitalize or expense each of the following expenditures related to the helicopter delivery operations in the current year:

Overhauled the engine at a cost of $$7,500.$ Health Services estimated the work would increase the service life for an additional five years.

Cleaned, repacked, and sealed the bearings on the helicopter at a cost of $$800.$

This repair is performed annually.

Added new emergency health equipment to the helicopter for $$25,000.$

Modified the helicopter to reduce cabin noise by installing new sound barrier technology at a cost of $$15,000.$

Paid insurance on the helicopter for the current year, which increased $15\%$ over the prior year to $$9,000.$

Performed annual maintenance and repairs at a cost of $$39,000.$