Question 4 (a) (b) (c) Define the following terms with relevant examples: (1) Capital Expenditure [5 marks] (1) Revenue Expenditure [ marks] Taniva Ltd is a high-end retailer of designer products. Some of the following transactions should be treated as capital transactions and some as revenue transactions: (1) Fire insurance premium on premises paid by cheque. () Improvements to shop premises by additions and alterations (i) Purchased cameras to install in the shop to prevent shoplifting. (iv) Additional racks bought, paid by cheque. (v) Paid staff salaries by cheque. Required: For each item given above, state whether it is capital expenditure or revenue expenditure in nature. [5 marks] Taniva Limited bought a piece of equipment costing $500,000 on 1 January 2024 The estimated useful life of the equipment is ten years. The scrap value at the end of the useful life is $40,000 Required: (i) Calculate the depreciation expense for 2024 using the straight-line method. [4 marks] (n) Calculate the depreciation expense for the first two years using the reducing balance method if the depreciation rate is 12.5% per annum. [6 marks] [Total: 25 marks]