Classify Each of the Following Expenditures as Capital Expenditure (CE)or

question 209

Short Answer

Classify each of the following expenditures as capital expenditure (CE)or revenue expenditure (RE).
1.________ Ordinary recurring repairs to keep the machinery in good working order
2.________ Major overhaul to extend the useful life of a vehicle by three years
3.________ Installation costs for a new machine
4.________ Painting

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Definitions:

Feasible Solution

A solution that meets all the constraints of a problem in operations research or optimization.

Profit

The financial gain achieved when the revenue generated from business activities exceeds the expenses, costs, and taxes needed to sustain the activity.

Constraints

Limitations or restrictions in a process, system, or project that can impact performance, timing, or results.

Locomotive Works

Industrial facilities specialized in the construction and maintenance of locomotives and other railway rolling stock.