Answered: capital expenditure or revenue…

capital expenditure or revenue expenditure: a. Purchase of dust cover for the computer printer. b. Payment made to get the building permit for the construction of storage shed.

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter7: Fixed Assets, Natural Resources, And Intangible Assets

Section: Chapter Questions

Problem 11CDQ

See similar textbooks

Related questions

Q: Identify the following costs that could be capitalized on the firm’s balance sheet (included in…

A: Capitalized costs are those costs which are shown as fixed assets and those costs are having life…

Q: If

Q: Consider the following transactions: Capital Expenditure Expenses a.) Acquired building for a down…

A: Introduction: Expenses: Amount spent for generating revenue called as expenses. Expenses are of two…

Q: the VLN, expenditures after acquisition are either expensed or capitalized. The company spent money…

A: Expenditure made after acquisition of an asset can be treated as capital expenditure or revenue…

Q: a. Indicate which costs incurred in acquiring the new printing press (1-6 below) should be debited…

A: Asset account includes all cost related to purchase of an asset and which is required to put an…

Q: Indicate whether each of the following expenditures should be classified as land (L), land…

A: We have the following question:

Q: Identify the following costs that could be capitalized on the firm's balance sheet (included in…

A: As per IAS 16, PPE capitalized costs are those costs considering the purchase price and cost of…

Q: Which of the following are classified as capital assets or expenditures? Purchase of goods Cost of…

A: Capital expenditures are usually non-recurring expenses whose cost is spread over the period of…

Q: The cost of a purchased building includes all of the following except closing costs. O real estate…

A: Introduction: The cost of assets is defined as the asset's original purchase price, from which we…

Q: What is the criterion a company uses to decide whether to include an expenditure in the cost of…

A: The criterion used by a company to include a cost in the cost of an asset is whether it is necessary…

Q: Which of the following expenses is deductible as an entertainment expense? a.The cost of a hunting…

A: Entertainment expenses are those expenses that include the cost of meals that you provide to the…

Q: 1. State whether each of the below is Capital Expenditure or Revenue Expenditure. a. Purchase of new…

A: Capital expenditure: It is the amount of funds invested in the business to get long-term benefits to…

Q: Identify which of the following is classified as a revenue expenditure a. Installation expense paid…

A: Expenditure can be divided into capital and revenue expenditure. The costs and expenses incurred in…

Q: Which of the following is an example of capital expenditure for a company? a. Spending money on…

A: There are various expenses which a company undertakes throughout the financial year to run the…

Q: The following are capital expenditures EXCEPT the decoration of office space installation of an…

A: Capital expenditure indicates the cost incurred by the company on their fixed assets which provides…

Q: Which of the following items should be accounted for as a capital expenditure?a. The monthly rental…

A: capital expenditure: It is the funds used by the company to acquire fixed assets such as…

Q: Based on the above and the result of your audit, determine the following: 1. Cost of Land 2. Cost of…

A: Land Building Land Improvements To Be Expensed Cost of Land which included an Old Apartment…

Q: Which of the following is recorded as a cost when purchasing an existing building? O A. cost to…

A: The correct solution is given in the following steps for your reference

Q: Nizwa Company bought an equipment for manufacturing tube lights and the company management requested…

A: Depreciation: Depreciation is an estimation of the declining value of the assets over their useful…

Q: Explain what impact these errors would have had over the last year and how you will correct them so…

A: Financial Statements:-These are statements prepared by the company in order to know its financial…

Q: Which of the following would be considered a capital expenditure? (A 22) O Making a payment on…

A: "Since you have asked multiple questions, we will solve first question for you. If you want any…

Q: Addition of a sprinkler system to the manufactoring facility to reduce the risk of fire damage,…

A: Any expense incurred on any asset is either expensed off in the same period or it is capitalized to…

Q: Which cost is not recorded as part of the cost of a building? Real estate commission paid to buy…

Q: Identify which of the following is classified as a revenue expenditure a. Cost of purchase of…

A: Capital expenditure means the cost incurred for the item which will be used in many year to come .…

Q: Which of the following is a capital expenditure? Select one: a. Cleaning, waxing, and polishing a…

A: EXPENSES CAN BE DEFINED AS REVENUE AND CAPITAL EXPENDITURE . REVENUE EXPENDITURE ARE THISE WHICH ARE…

Q: $179,980 Broker's commission

A: Assets: Assets are those items that provide value for money and future economic benefit for an…

Q: Qualifying building expenditure (QBE) is a capital expenditure incurred on the construction or…

A: Property, Plant, and Equipment or PP&E is a classification shown on a balance sheet. It normally…

Q: which of the following is a revenue expenditure : a- purchase of a computer for the office b-…

A: Revenue expenditure: It refers to the amount spent on normal maintenance and repairs of fixed assets…

Q: which of the following is a capital expenditure : a- repairs to motor vehicles b- goods were…

A: Expenditure is of two types; 1.Revenue expenditure : This is a type of cost which is expensed in the…

Q: All of the following costs would be included when calculating equipment cost, except: Select one: a.…

A: Property, Plant, and Equipment: Property, Plant, and Equipment refers to the fixed assets, having a…

Q: Identify the following costs that could be capitalized on the firm’s balance sheet (included in…

A: Expenses related with the development or usage of a fixed asset are common for businesses. Such…

Q: Several expenditures are listed below. Indicate whether or not each expenditure would be included in…

A: Equipment cost includes Purchase Price ( Invoice price less deduction ) Transportation ( Freight…

Q: Gallon Auto purchased a neighboring lot for a new building and parking lot. Indicate whether each of…

A: Please find the answers to the above questions below:

Q: Which of the following is recorded as a cost when purchasing an existing building? A. cost to…

A: Capitalisation and expensing are two forms of treatment of costs. Costs which are necessary for…

Q: a. Compute the average carrying amount on Laserwords' new building during the capitalization period.…

A: An entity shall capitalize borrowing costs that are directly attributable to the acquisition,…

Q: What is the cost of the land, based upon the following data? Land purchase price $184,449 Broker's…

A: Assets: Assets are those items that provide value for money and future economic benefit for an…

Q: The cost of a purchased building includes: Select one: a. Demolishing old building costs. O b.…

A: As posted multiple questions we are answering only one question at a time. Kindly repost the…

Q: $ 179,000 15,400 1,200 2,400 1,400 Purchase price Real estate commissions Legal fees Expenses of…

A: Here cost that should be allocated to building are not given.

Q: C & M Securities made several expenditures during the current fiscal year, including the following:…

A: 1 . EXPENDITURE INCURRED TO MAINTAIN THE ASSETS IN THE CURRENT WORKING CONDITION AND ARE NOT…

Q: Capitalizing versus expensing For each of the following expenditures, indicat the type of account…

A: Capital expenditures are those expenditures which are incurred to increase or enhance the value of…

Q: 1. State whether each of the below is Capital Expenditure or Revenue Expenditure. Purchase of new…

A: Capital expenditure includes all those expenditure which are require high amount of cash outflow and…

Question

Classify whether the following is capital expenditure or revenue expenditure:
a. Purchase of dust cover for the computer printer.
b. Payment made to get the building permit for the construction of storage shed.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

Step 2

Step 3

Step 4

Step by step

Solved in 4 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Which of the following items should be accounted for as a capital expenditure?a. The monthly rental cost of an office buildingb. Costs incurred to repair leaks in a building’s roofc. Maintenance fees paid with funds provided by the company’s capitald. Taxes paid in conjunction with the purchase of office equipment
Which of the following is NOT a capital expenditure? Fire insurance premium on a new building Architect's fees for a new building Expenditure incurred in the construction of parking space for staff Costs incurred in transporting newly purchases machinery
The following are capital expenditures EXCEPT the decoration of office space installation of an air conditioning system O fire insurance on a building renovation of office space
Which of the following is considered capital expenditure Select one: a. Research expenses. b. Purchase of office consumables. c. Cost of material to construct new plant. d. Staff overtime.
which of the following is a capital expenditure : a- repairs to motor vehicles b- goods were taken by the owner for own use c- the cost of raw materials used in extending the premises d- renewing the electrical wiring in the office
To what extent do you consider the following items to be proper costs of the fixed asset? Give reasons for your opinions. a. Overhead of a business that builds its own equipment. b. Cash discounts on purchases of equipment. c. Interest paid during construction of a building. d. Cost of a safety device installed on a machine. e. Freight on equipment returned before installation, for replacement by other equipment of greater capacity. f. Cost of moving machinery to a new location. g. Cost of plywood partitions erected as part of the remodeling of the office. h. Replastering of a section of the building. i. Cost of a new motor for one of the trucks.
Indicate where the following items would be shown on abalance sheet.(a) A lien that was attached to the land when purchased.(b) Landscaping costs.(c) Attorney’s fees and recording fees related to purchasingland.(d) Variable overhead related to construction of machinery.(e) A parking lot servicing employees in the building.(f) Cost of temporary building for workers during constructionof building.(g) Interest expense on bonds payable incurred duringconstruction of a building.(h) Assessments for sidewalks that are maintained bythe city.(i) The cost of demolishing an old building that was onthe land when purchased.
The following would be non-deductible capital expenditure: (a.) The investment banker fees incurred in a hostile take-over (b.) The cost of fixing a leaky copper pipe in an office building. (c.) The cost of removing asbestos and re-insulating an entire office building (d.) The cost of paper supplies used in a law office.
Which of the following are includable to the cost of property and equipment? Transportation costs on machinery purchased under terms FOB shipping point Interest on loans borrowed to purchase an equipment Installation costs and cost of trial runs of a machinery Repairs on broken glass windows of a purchased buildings prior to occupancy
Which cost is not recorded as part of the cost of a building? a. Real estate commission paid to buy the building b. Construction materials and labor c. Concrete for the building’s foundation d. Annual building maintenance
Which of the following is an example of a capital expenditure? Select all that apply A- New equipment B- Employee salaries C- Computer software D- Repair and renovation costs
During the current year, Alanna Co. had the following transactions pertaining to its new office building. A. What should Alanna Co. record on its books for the land? The total cost of land includes all costs of preparing the land for use. The demolition cost of the old building is added to the land costs, and the sale of the old building scrap is subtracted from the land cost. B. What should Alanna Co. record on its books for the building?