The Wilson Corporation Incurs the Following Expenses

question 135

Essay

The Wilson Corporation incurs the following expenses. Explain whether the following expenses should be capitalized or deducted in the current period.
a.Paid $2,500 to blacktop a gravel parking lot.
b.Paid $1,900 for new tires on the truck.
c.Paid $3,000 for a new fire and security alarm system for the factory.
d.Paid $6,250 to paint the interior and exterior of the office and factory building that it just acquired.
e.Paid $1,200 for a new compressor for the factory's central air conditioning system.

---

Definitions:

French Officials

Personnel or authorities that govern, administer, or represent France at various levels of organization, from local communities to international relations.

United States Officials

Individuals holding positions of authority or public service in various branches of the U.S. government, including executive, legislative, and judicial roles.

Shell Shock

A term coined during World War I to describe the psychological trauma experienced by soldiers after prolonged exposure to warfare.

Field Hospitals

Temporary medical units established to provide care and treatment to the sick and wounded near areas of active combat or natural disaster.