qs 10 - 11 (algo) revenue and capital expenditures lo c3\n\na. paid $54,000 cash to replace a motor on…

qs 10 - 11 (algo) revenue and capital expenditures lo c3\n\na. paid $54,000 cash to replace a motor on equipment that extends its useful life by four years.\nb. paid $270 cash per truck for the cost of their annual tune - ups.\nc. paid $216 for the monthly cost of replacement filters on an air - conditioning system.\nd. completed an addition to a building for $303,750 cash.\n\ncomplete this question by entering your answers in the tabs below.\n\nrequired 1 required 2\n\nclassify the above transactions as either a revenue expenditure or a capital expenditure.\n\ntransaction type\na. paid $54,000 cash to replace a motor on equipment that extends its useful life by four years.\nb. paid $270 cash per truck for the cost of their annual tune - ups.\nc. paid $216 for the monthly cost of replacement filters on an air - conditioning system.\nd. completed an addition to a building for $303,750 cash.

qs 10 - 11 (algo) revenue and capital expenditures lo c3\n\na. paid $54,000 cash to replace a motor on equipment that extends its useful life by four years.\nb. paid $270 cash per truck for the cost of their annual tune - ups.\nc. paid $216 for the monthly cost of replacement filters on an air - conditioning system.\nd. completed an addition to a building for $303,750 cash.\n\ncomplete this question by entering your answers in the tabs below.\n\nrequired 1 required 2\n\nclassify the above transactions as either a revenue expenditure or a capital expenditure.\n\ntransaction type\na. paid $54,000 cash to replace a motor on equipment that extends its useful life by four years.\nb. paid $270 cash per truck for the cost of their annual tune - ups.\nc. paid $216 for the monthly cost of replacement filters on an air - conditioning system.\nd. completed an addition to a building for $303,750 cash.

Answer

Brief Explanations:

  1. a: Replacing a motor and extending useful - life is a capital expenditure as it enhances the long - term value of the asset.
  2. b: Annual tune - ups are regular maintenance costs, so they are revenue expenditures.
  3. c: Monthly filter replacements are routine operating costs, thus revenue expenditures.
  4. d: Building addition is a capital expenditure as it adds to the long - term value of the building.

Answer:

a. Capital expenditure b. Revenue expenditure c. Revenue expenditure d. Capital expenditure