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    Deciding Whether to Capitalize or Expense

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    Should the following be capitalized or expensed?

    $400 for repairing damage that resulted from the careless unloading of a new machine.
    $4,000 cost of designing and registering a trademark.
    $2800 in legal fees incurred to perform a title search for the acquisition of land.
    $800 cost of patching a lead in the roof of a building.
    $180,000 cost of salaries paid to the research and development staff.

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    Solution Preview

    For your review, I have attached a MS Word file containing assistance for the posted request.

    DKF

    Capitalizing versus Expensing
    1) $400 for repairing damage that resulted from the careless unloading of a new machine. -Since the new machine has not ...

    Solution Summary

    The response includes in-line text and an attached Word file contains classical illustrations in regards to the types of transactions that should be capitalized or expensed.

    $2.19

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