State whether the following are capital, revenue or deferred revenue expenditure.

(i) Carriage of $ 7,500 spent on machinery purchased and installed.

(ii) Heavy advertising costs of $ 20,000 spent on the launching of a company’s new product.

(iii) $ 200 paid for servicing the company vehicle, including $ 50 paid for changing the oil.

(iv) Construction of basement costing $ 1, 95,000 at the factory premises.

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The detailed answer for the above question is provided below Solution i Carriage of 7500 ... View the full answer