Deciding whether to capitalize an expense

Assignment Help Accounting Basics

Reference no: EM132091350

Question: Deciding Whether to Capitalize an Expense For each of the following items, enter the correct letter to the left to show whether the expenditure should be capitalized (C) or expensed (E). Transactions

____ 1. Paid $600 for ordinary repairs.

____ 2. Paid $16,000 for extraordinary repairs.

____ 3. Paid cash, $200,000, for addition to old building.

____ 4. Paid for routine maintenance, $250, on credit.

____ 5. Purchased a machine, $70,000; gave long-term note.

____ 6. Purchased a patent, $45,300 cash.

____ 7. Paid $20,000 for monthly salaries.

Reference no: EM132091350

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