Question $1($Mandatory$)(10$ points$)$

Identify which of the Following expenditures is considered a capitial expenditure that must be capatilized $($depreciated$)$:

Note: Unless otherwise specified, use current tax rate for corporate taxes. Reference Internal Revenue Service $($IRS$)$ website $($

irs.gov$)$ for up to date information. As of Jaunary $1,2018,$ the Tax Cuts and Jobs Act set the corporate tax rate at $21\%.$

Purchase land to build a warehouse at $$300,000$

Paint the interior and exterior of the office building at a cost of $$22,000.$

Install a conveyor system at a cost of $$55,000$ to automate part of some production process

Payment of $$12,000$ for the lease of a dump truck over a perion od six months

Purchase of a patent on an energy$-$saving device over a period of five years at a cost of $$30,000$

Repave the parking lot at a cost of $$25,000$

Purchase a spare part for a stamping machine at a cost of $$3,800$

Install a pufified water fountain in the employess lounge at a cost of $$3,000$

Purchase a copy machine at $$15,000$