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If Halley Industries reimburses employees who earn master's degrees and who agree to remain with the firm for an additional 4 years, should the expense of the tuition reimbursement be categorized as a capital expenditure or an operating expenditure?
a. The tuition reimbursement should be categorized as a operating expenditure since the outlay of funds is expected to produce benefits over a period of time greater than 1 year
b. The tuition reimbursement should be categorized as a capital expenditure since the outlay of funds is expected to produce benefits over a period of time greater than 1 year
c. The tuition reimbursement should be categorized as a capital expenditure since the outlay of funds represents an expense incurred in transacting normal business operations
d. The tuition reimbursement should be categorized as a operating expenditure since the outlay of funds represents an expense incurred in transacting normal business operations
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