Capital and Revenue Expenditures                                   Kimbrell Freight Lines Co. incurred the following costs related to trucks and vans used in operating                 its delivery service:                                   Classify each of the costs as either a capital expenditure or a revenue expenditure.                 Choose a C for capital or an R for revenue in the box following the item.                                   1. Changed the oil and greased the joints of all the trucks and vans.                                 2. Installed a hydraulic lift to a van                                 3. Installed a new engine in a truck purchased three years ago                                 4. Repaired a flat tire on one of the vans                                 5. Installed a refrigeration unit on a truck to equip it to carry perishable goods

Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter10: Property, Plant And Equipment: Acquisition And Subsequent Investments
Section: Chapter Questions
Problem 19E
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Capital and Revenue Expenditures                
                 
Kimbrell Freight Lines Co. incurred the following costs related to trucks and vans used in operating                
its delivery service:                
                 
Classify each of the costs as either a capital expenditure or a revenue expenditure.                
Choose a C for capital or an R for revenue in the box following the item.                
                 
1. Changed the oil and greased the joints of all the trucks and vans.              
                 
2. Installed a hydraulic lift to a van              
                 
3. Installed a new engine in a truck purchased three years ago              
                 
4. Repaired a flat tire on one of the vans              
                 
5. Installed a refrigeration unit on a truck to equip it to carry perishable goods              
                 

 

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