Smith Corporation incurred the following expenditures. Which of these purchases should be capitalized as a long-term asset?
Question:
Smith Corporation incurred the following expenditures. Which of these purchases should be capitalized as a long-term asset? (ONLY answer either "Yes" if it should be capitalized or "No" if it should be expensed;)\ \ $8,000 to procure office supplies for the corporate headquarters. \ $325 for maintenance to a company-owned vehicle. \ $37,000 for the purchase of an additional company vehicle. \ $1,800 to paint the offices within a company facility. \ $75,000 for the use of a consultant. \ $390,000 for the purchase of annual insurance coverage for the companys operations \ \ $64,000 for the purchase of equipment to be used in the companys manufacturing facility. \ \ \ $750,000 for the renovation and refurbishment of an existing company facility, thereby extending the life of the facility for an additional 8 years
Expert Answer:
8000 for office supplies No this should be expensed as the supplies are consumed within a year 325 f... View the full answer
