Gunselman Company Purchased a Machine on January 1, 2014

question 130

Essay

Gunselman Company purchased a machine on January 1, 2014. 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) installation costs necessary to secure the machinery to the building flooring,
(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) annual city operating license.
Instructions
Indicate whether the items (a) through (h) are capital or revenue expenditures in the spaces provided: C = Capital, R = Revenue.

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Definitions:

Political Instability

A situation in which a government or political system is at risk due to various factors like civil unrest, sudden changes in leadership, or economic crises.

North Atlantic Treaty Organization

A military alliance formed in 1949 for mutual defense and cooperation among North American and European countries.

Senate Debate

A Senate debate is a formal discussion on proposed legislation or issues, taking place in the Senate chamber, where Senators express their opinions and argue for or against the matter at hand.

Conflict

A serious disagreement or argument, typically a protracted one, that can occur between individuals, groups, or nations.