Describe capital expenditures
Describe briefly the term capital expenditures?
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Capital Expenditure is an amount acquired for acquiring the long term assets like land, equipments, building that are continually employed for the reason of earning revenue. Such are not intended for sale. Such costs are recorded in account that is Property, Plant, and Equipment. Profits from this expenditure are spread on numerous accounting years.
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Depreciated the equipment, estimated life 5 years, estimated salvage value $5000, straight line depreciation
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