For Each of the Following Independent Items, Indicate Whether the Item

question 98

Essay

For each of the following independent items, indicate whether the item should be capitalized or expensed.Support your answer.
A) The roof is replaced on a warehouse.The old roof was leaking, but the rest of the warehouse is well maintained.
B) A fitness club closes for 2 days every year and brings in an outside service to empty the swimming pool and clean and repaint it.
C) All the desk chairs in the office area were replaced with more ergonomically designed ones.D) New snow tires were bought for all of the delivery trucks in the company's fleet.
E) Several offices in the company's head office were repainted.
F) New showroom was painted as part of the remodelling project that expanded the existing showroom.

• A) The roof is replaced on a warehouse.The old roof was leaking, but the rest of the warehouse is well maintained.
• B) A fitness club closes for 2 days every year and brings in an outside service to empty the swimming pool and clean and repaint it.
• C) All the desk chairs in the office area were replaced with more ergonomically designed ones.D) New snow tires were bought for all of the delivery trucks in the company's fleet.
• E) Several offices in the company's head office were repainted.
• F) New showroom was painted as part of the remodelling project that expanded the existing showroom.

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Definitions:

Annual Meeting

A yearly gathering of a company's interested shareholders where directors report on the year's activities and shareholders vote on various issues.

Proxy

A writing signed by a shareholder that authorizes the individual named in the writing to exercise the shareholder’s votes (corresponding to his or her shares of stock) at a shareholders’ meeting.

Annual Corporate

This term refers to yearly activities and obligations a corporation must fulfill, including financial reporting and meetings.

Criminal Behavior

Activities that violate the laws of a jurisdiction and are punishable by the state or other authority.