Question $5(10$ points$)$

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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 $21\%.$

Question $5$ options:

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

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Purchase a copy machine at $$15,000$

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

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

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

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

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

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

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