Identify the Appropriate Accounting Treatment for Each of the Payments

question 78

Short Answer

Identify the appropriate accounting treatment for each of the payments listed below using the following code:
C = Capitalize
E = Expense
N = Neither of the above
______ 1.$5,000 spent to improve the working condition of a truck
______ 2.$10,000 spent to pay a liability
______ 3.Bought a machine that cost $40,000
______ 4.Distributed $3,000 cash to the owners
______ 5.Spent $78 tuning up a truck
______ 6.Spent $234 to have a piece of equipment shipped to the warehouse where it will be used
______ 7.$17,000 spent to make a crushing machine work faster
______ 8.$16,000 spent to make a trash compactor work more efficiently
______ 9.Paid the monthly fee to have the factory equipment oiled
______ 10.Paid an architect $5,600 to design an office building

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Definitions:

Nurses' Health Study

A long-term research project investigating the factors that influence women's health.

Correlational Research

A scientific research methodology that examines the relationship between two or more variables to determine if a correlation exists.

Causal Research

A type of investigation aimed at determining cause-and-effect relationships.

Power Analysis

A statistical method used to determine the smallest sample size needed to detect an effect of a given size with a certain degree of confidence.