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PROBLEM #2 DD Company provided the following charges to the repair and maintenance account: Continuing and frequent repairs 600,000 Initial design fee for proposed extension of the office building 225,000 Installation of automatic door-opening system 300,000 Major improvements to the electrical wiring system 45,000 Overhead crane for assembly department to speed up production 525,000 Purchase and installation of windows and screens of better quality 750,000 Purchase of a more powerful machine to replace the old machine 90,000 Repainting of office building 150,000 Replacement of broken gear on a machine 90,000 Replacement of door to production area 75,000 Replacement of wooden floor by concrete flooring 180,000 Sealing of roof leaks in production area 120,000 Service contract on office equipment 150,000 REQUIRED: Compute for the: a) Amount of expenditures that should be capitalized b) Amount of expenditures that should be charged to repair and maintenance expense