Answer:
The answer would be
Explanation:
Consider the expenditures listed below and classify each of the expenditures as a capital expenditure or a revenue expenditure related to machinery.
a. Purchase price: Capital expenditure.
b. Ordinary recurring repairs to keep the machinery in good working order: Revenue expenditure.
c. Lubrication before machinery is placed in service:Capital expenditure.
d. Periodic lubrication after machinery is placed in service: Revenue expenditure.
e. Major overhaul to extend useful life by three years: Capital expenditure.
f. Sales tax paid on the purchase price: Capital expenditure.
g. Transportation and insurance while machinery is in transit from seller to buyer: Capital expenditure.
h. Installation: Capital expenditure.
i. Training of personnel for initial operation of the machiner: Capital expenditure.
