Classify the following items as either revenue or capital expenditure: An extension to an office building costing £24,000. The cost of replacement valves on all the labeling machines in a canning factory. Repairs to the warehouse roof. Annual service costs for a courier firm’s fleet of vans. Replacement of rubber tread on a printing press with a plastic one that has resulted in the useful economic life of the printing press being extended by three years. A new bicycle purchased by a newsagent for use by the newspaper delivery boy. (g) Repairs to a refrigeration system of a meat wholesaler. (h)Repainting of the interior of a bar/restaurant which has greatly improved the potential for finding a buyer for the bar/restaurant as a going concern. (i) Wages paid to employees who worked on the construction of their company’s new office bui
Classify the following items as either revenue or capital expenditure: An extension to an office building costing £24,000. The cost of replacement valves on all the labeling machines in a canning factory. Repairs to the warehouse roof. Annual service costs for a courier firm’s fleet of vans. Replacement of rubber tread on a printing press with a plastic one that has resulted in the useful economic life of the printing press being extended by three years. A new bicycle purchased by a newsagent for use by the newspaper delivery boy. (g) Repairs to a refrigeration system of a meat wholesaler. (h)Repainting of the interior of a bar/restaurant which has greatly improved the potential for finding a buyer for the bar/restaurant as a going concern. (i) Wages paid to employees who worked on the construction of their company’s new office bui
Chapter10: Cost Recovery On Property: Depreciation, Depletion, And Amortization
Section: Chapter Questions
Problem 23P
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- Classify the following items as either revenue or capital expenditure:
- An extension to an office building costing £24,000.
- The cost of replacement valves on all the labeling machines in a canning factory.
- Repairs to the warehouse roof.
- Annual service costs for a courier firm’s fleet of vans.
- Replacement of rubber tread on a printing press with a plastic one that has resulted in the useful economic life of the printing press being extended by three years.
- A new bicycle purchased by a newsagent for use by the newspaper delivery boy.
(g) Repairs to a refrigeration system of a meat wholesaler.
(h)Repainting of the interior of a bar/restaurant which has greatly improved the potential for finding a buyer for the bar/restaurant as a going concern.
(i) Wages paid to employees who worked on the construction of their company’s new office building
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