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Here is the list, and need to know on each one if is a Capital or Revenue Expend

ID: 2443505 • Letter: H

Question

Here is the list, and need to know on each one if is a Capital or Revenue Expenditure:
1) Replaced a truck's suspension system with a new one that allows for delivery of heavier loads.
2) Installed a hydraulic lift to a van.
3)Repaired a flat tire on the van.
4)Overhauled the engine on one truck that was purchased 3 yrs ago.
5) Removed a 2 way radio from on one truck and installed a new radio w/greater range of communication.
6)Rebuilt the transmission that had been driven 40,000 miles and no longer under warranty.
7)Changed the radiator fluid on a truck that had been in service for 4 yrs.
8)Tinted back and side windows to discourage theft of contents in a van.
9)Changed the oil and greased the joints of all the trucks and vans.
10) Installed security systems on four of the newer trucks.

Explanation / Answer


1) Replaced a truck's suspension system with a new one that allows for delivery of heavier loads.
      Capital Expenditure
2) Installed a hydraulic lift to a van.
      Capital Expenditure
3) Repaired a flat tire on the van.
       Revenue Expenditure
4) Overhauled the engine on one truck that was purchased 3 yrs ago.
       Capital Expenditure
5) Removed a 2 way radio from on one truck and installed a new radio w/greater range of communication.
       Capital Expenditure
6) Rebuilt the transmission that had been driven 40,000 miles and no longer under warranty.
       Revenue Expenditure
7) Changed the radiator fluid on a truck that had been in service for 4 yrs.
       Revenue Expenditure
8) Tinted back and side windows to discourage theft of contents in a van.
       Capital Expenditure
9) Changed the oil and greased the joints of all the trucks and vans.
       Revenue Expenditure
10) Installed security systems on four of the newer trucks.
       Capital Expenditure