Capital expenditure or an operating expenditure

Assignment Help Finance Basics
Reference no: EM131108424

Given the following list of outlays, indicate whether each is normally considered a capital expenditure or an operating expenditure. 
Explain your answers.

a. An initial lease payment of $5,000 for electronic point-of-sale cash register systems.

b. An outlay of $20,000 to purchase patent rights from an inventor.

c. An outlay of $80,000 for a major research and development program.

d. An $80,000 investment in a portfolio of marketable securities.

e. A $300 outlay for an office machine.

f. An outlay of $2,000 for a new machine tool.

g. An outlay of $240,000 for a new building.

h. An outlay of $1,000 for a marketing research report.

Reference no: EM131108424

Questions Cloud

How is it determined whether deferred tax amounts : How is it determined whether deferred tax amounts are considered to be "related" to specific asset or liability amounts?
What exactly is the festspielhaus baden-baden : The Festspielhaus Baden-Baden is another building that is the largest of its kind in Germany. What exactly is the Festspielhaus Baden-Baden
Different managerial aspects of university associated : Johnson (1973) studied several different managerial aspects of university associated schools of nursing. Among the data she collected were the "extent of agreement (between the dean and the faculty) on the responsibilities for decision making" and..
Who was this literary genius : Calw is one of the Black Forest's prettiest towns. Including among his works the 1920s novel "Steppenwolf", who was this literary genius
Capital expenditure or an operating expenditure : Given the following list of outlays, indicate whether each is normally considered a capital expenditure or an operating expenditure. Explain your answers. An initial lease payment of $5,000 for electronic point-of-sale cash register systems. An outla..
Describe the procedures involved in segregating : Describe the procedures involved in segregating various deferred tax amounts into current and noncurrent categories.
State legislators working with tight budgets : A question of significance to state legislators working with tight budgets is the spending for secondary education.
Waveguide for mono-mode transmission : To include appropriate safety margins, the dimensions of the waveguides have to be selected such that the lowest frequency of the band is 20% above the cutoff frequency of the fundamental mode, and the highest frequency of the band is 20% lower th..
Major overhaul expenses in addition to annual maintenance : A proposed bridge will lust 40 years, Annual maintenance will be $16,000 Major overhaul expenses in addition to the annual maintenance will occur at the end of years 10 and 30. Each overhaul will cost $20,000. First cost is $120,000. If i = 10%, the ..

Reviews

Write a Review

Finance Basics Questions & Answers

  Calculate the intrinsic value using the multistage model

Micro Corp. just paid dividends of $2 per share. Assume that over the next three years dividends will grow as follows, 5% next year, 15% in year two, and 25% in year 3. Calculate the intrinsic value using the multistage model

  What is the wacc for the funds klose will be raising

The CFO estimates that a proposed expansion would require an investment of $3.4 million. What is the WACC for the funds Klose will be raising? Round your answer to two decimal places.

  Crisp cookwares common stock is expected to pay a dividend

crisp cookwares common stock is expected to pay a dividend of 3 a share at the end of the year d1 3.00 and its betta

  Maynard steel plans to pay a dividend

Maynard Steel plans to pay a dividend of $3 this year. The company has an expected earnings growth rate of 4%, calculate the  rate of Maynard's dividends.

  What is the amount of qualifying expenses for the purpose

What is the amount of qualifying expenses for the purpose of the Hope Credit? What is the amount of the Hope Credit that John and Mary can claim based on their AGI?

  Determining annuity assessment

What is the relationship between the present value of a single dollar payment formula and present value of ordinary annuity formula for same number of years and same discount rate?

  Calculate the correlation coefficient for this sample

Suppose GNC, a vitamin and supplement supplier, would like to investigate the relationship between the size of an order and the age of the customer who ordered it.

  Using a financial calculator for mortgage loans

Lucy wishes to buy a house and has approached a bank and been informed that a thirty year mortgage loan with monthly payments and compounding would have an APR of 5.4 percent.

  Evaluate an employee benefits plan

Determine what components can be included in a cafeteria plan? What types of employee compensation plans do you recommend for the company that you are evaluating?

  A portfolio has 4600 invested in stock x what is the

a portfolio has4600 invested in stock x and5200 invested in stock z.what is the expected return on the portfolio if the

  Can the nominal interest rate available to an investor be

Can the nominal interest rate available to an investor be significantly negative? (Hint: Consider the interest rate earned from saving cash “under the mattress.”) Can the real interest rate be negative? Explain.

  Federal taxes

Candy owns 40% of the stock of Park, Inc. an S corporation. Her stock basis is $25,000, and she loaned $10,000 to the corporation during the year. How much of Park's $100,000 operating loss can Candy deduct for this year? Show your computation of the..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd