Question

Indicate whether the items (a) through (h) are capital orrevenue expenditures in the spaces provided above. C = Capital, R =Revenue.

Martinez Company purchased a machine on January 1, 2014. Inaddition to the purchase price paid, the following additional costswere incurred:

______ (a) sales tax paid on the purchaseprice,

______ (b) transportation and insurancecosts while the machinery was in transit from the seller,

______ (c) personnel training costs forinitial operation of the machinery,

______ (d) annual city operatinglicense,

______ (e) major overhaul to extend the lifeof the machinery,

______ (f) lubrication of the machinerygearing before the machinery was placed into service,

______ (g) lubrication of the machinerygearing after the machinery was placed into service, and

______ (h) installation costs necessary tosecure the machinery to the building flooring.