. Paid $64,000 cash to replace a motor on equipment that extends its useful life by four years. . Paid $320 cash per truck for the cost of their annual tune-ups. . Paid $256 for the monthly cost of replacement filters on an air-conditioning system. 1. Completed an addition to a building for $360,000 cash. Classify the above transactions as either a revenue expenditure or a capital expenditure. . Prepare the journal entries to record the four transactions from part 1. Complete this question by entering your answers in the tabs below.
. Paid $64,000 cash to replace a motor on equipment that extends its useful life by four years. . Paid $320 cash per truck for the cost of their annual tune-ups. . Paid $256 for the monthly cost of replacement filters on an air-conditioning system. 1. Completed an addition to a building for $360,000 cash. Classify the above transactions as either a revenue expenditure or a capital expenditure. . Prepare the journal entries to record the four transactions from part 1. Complete this question by entering your answers in the tabs below.
Chapter10: Cost Recovery On Property: Depreciation, Depletion, And Amortization
Section: Chapter Questions
Problem 23P
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