Kennett Company Purchased a Machine on January 1, 2010

question 31

Essay

Kennett Company purchased a machine on January 1, 2010. In addition to the purchase price paid, the following additional costs were incurred: (a) sales tax paid on the purchase price, (b) transportation and insurance costs while the machinery was in transit from the seller, (c) personnel training costs for initial operation of the machinery, (d) annual city operating license, (e) major overhaul to extend the life of the machinery, (f) lubrication of the machinery gearing before the machinery was placed into service, (g) lubrication of the machinery gearing after the machinery was placed into service, and (h) installation costs necessary to secure the machinery to the building flooring.
Instructions
Indicate whether the items (a) through (h) are capital or revenue expenditures in the spaces provided: C = Capital, R = Revenue.
(a)_____________ (b)______________ (c)______________ (d)______________
(e)_____________ (f)______________ (g)______________ (h)______________

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Definitions:

Lepidosaur Lineage

A lineage of reptiles that includes squamates (lizards, snakes) and rhynchocephalians (tuataras), characterized by their scaled skin.

Extant Turtles

Refers to turtle species that are currently existing or living, as opposed to those that have become extinct.

Metabolic Mechanisms

The biochemical processes that occur within a living organism to maintain life.

Saclike Lungs

Lungs that consist of air sacs, facilitating gas exchange in various organisms, particularly birds, allowing for efficient respiration.