Problem

Capitalizing versus expensing For each of the following expenditures, indicate the type of...

Capitalizing versus expensing For each of the following expenditures, indicate the type of account (asset or expense) in which the expenditure should be recorded. Explain your answers.

a. $400 for repairing damage that resulted from the careless unloading of a new machine.


b. $14,000 cost of designing and registering a trademark


c. $2,800 in legal fees incurred to perform a title search for the acquisition of land.


d. $800 cost of patching a leak in the roof of a building.


e. $180,000 cost of salaries paid to the research and development staff.

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