Which expenditures should be capitalized


Response to the following problem:

Capitalizing versus expensing

Riley Holdings Corp. incurred the following expenditures: $3,100 cost to replace the transmission in a company-owned vehicle; $16,400 cost of annual property insurance on the company's production facilities; $13,800 cost to develop and register a design patent; $62,200 cost to add a security and monitoring system to the company's distribution center; $400 cost to repair paint damage on a company-owned vehicle caused by normal wear and tear.

Required: Which, if any, of these expenditures should be capitalized?

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Financial Accounting: Which expenditures should be capitalized
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