Identify each of the following items as either a capital expenditure (C), expense on the income…

Identify each of the following items as either a capital expenditure (C), expense on the income statement (E), or neither (N):Type of ExpenditureC Capital expenditureE Expensed on income statementN Neither capital expenditure or expensedTransaction1. Purchased a computer and peripheral equipment for $25,600 cash.2. Paved a parking lot on leased property for $100,000.3. Repaired plumbing in main plant, paying $150,000 cash.4. Purchased equipment for new manufacturing plant, $5,000,000; financed with long-term note.5. Paid $50,000 in cash for installation of equipment in (4).6. Paid $15,000 maintenance on equipment in (4) during its first year of use.7. Paid $150,000 to tear down old building on new plant site.8. Paid dividends of $50,000.9. Paid interest on construction note for new plant building, $550,000.10. Paid property taxes of $50,000 for the first year the new building is occupied.View Solution:
Identify each of the following items as either a capital

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