Which of the Following Are Capital Expenditures and Which Are

question 23

Essay

Which of the following are capital expenditures and which are ordinary and necessary business expenses?
(a.) Costs incurred to make improvements to a building to make it accessible to handicapped citizens as mandated by federal law.
(b.) Costs incurred to convert an office building into a night club. (c.) Costs incurred to train new employees.
(d.) Costs to repair a leak in the roof of an office building.

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Definitions:

Affinity Laws

Mathematical equations that describe the relationship between variables such as flow, pressure, and power across fans, pumps, and other fluid dynamic systems.

Motor Speed

The rate at which an electric motor's shaft rotates, typically measured in revolutions per minute (RPM).

Pump

A mechanical device that moves fluids (liquids or gases), or sometimes slurries, by mechanical action.

V/F Principle

The principle that states the ratio of voltage to frequency (V/F) should remain constant for AC drives to maintain torque.