For each of the following items, indicate whether the costs should be capitalized or expensed immediately.
1. Purchased a patent for $12,000
2. Paid $5,500 to overhaul a drilling rig. The overhaul will extend the useful life by 3 years.
3. Paid $600 for routine maintenance and lubrication of a tractor.
4. paid $6,500 to install new equipment in the production line that will "super-cool" the product
and allow for faster shipping of fresher merchandise
5. Equiment is purchased for $8,000 for a specific R&D project