Estimating capital or revenue expenditure


Question: For each of the given situations, estimate whether it is capital [C] or revenue [R] expenditure.

[A] The owner of a restaurant paid a plumber 400 dollars to install a new dishwasher in the kitchen.

[B] Paid $1,300 in sales tax on a new delivery van when registering the van at the Registry of Motor Vehicles.

[C] Purchased land and a building at a cost of 750,000 dollars by paying 200,000 dollars down and signing a two year note payable for the remainder.

[D] Spent 235 dollars on a tune-up for a truck used in making deliveries.

[E] A new machine was accidently damaged during installation. The Uninsured cost to repair the machine was 1,250 dollars.

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Finance Basics: Estimating capital or revenue expenditure
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