XYZ Co. incurred the following costs related to the office building used in operating its sports supply company:
a.Replaced a broken window.
b.Replaced the rof that had been on the building 23 years.
c.Serviced all the air conclitioners before sumuner started.
d.Replaced the air conditionerswith refrigerated air conditioners in the customer service areas.
e.Added a warehouse to the back of the building.
f.Repainted the interior walls.
g.Installed window shutters on all windows. Classify each of the costs as a capital expenditure or a revenue expenditure. For those costs identified as capital expenditures, classify each as an additional or replacement component.

Question

XYZ Co. incurred the following costs related to the office building used in operating its sports supply company:
 a.Replaced a broken window.
b.Replaced the rof that had been on the building 23 years.
c.Serviced all the air conclitioners before sumuner started.
d.Replaced the air conditionerswith refrigerated air conditioners in the customer service areas.
e.Added a warehouse to the back of the building.
f.Repainted the interior walls.
g.Installed window shutters on all windows. Classify each of the costs as a capital expenditure or a revenue expenditure. For those costs identified as capital expenditures, classify each as an additional or replacement component.

Quizplus · Accepted Answer

The Answer of XYZ Co. incurred the following costs related to the office building used in operating its sports supply company:
 a.Replaced a broken window.
b.Replaced the rof that had been on the building 23 years.
c.Serviced all the air conclitioners before sumuner started.
d.Replaced the air conditionerswith refrigerated air conditioners in the customer service areas.
e.Added a warehouse to the back of the building.
f.Repainted the interior walls.
g.Installed window shutters on all windows. Classify each of the costs as a capital expenditure or a revenue expenditure. For those costs identified as capital expenditures, classify each as an additional or replacement component.

XYZ Co Incurred the Following Costs Related to the Office Building