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    Peachey's Avatar
    Peachey Posts: 99, Reputation: 1
    Junior Member
    		  
    #1

    Jul 1, 2009, 09:27 AM
    Expenditures
    Please explain which is capital expenditure and revenue expenditures and why. I've tried tried grouping them without luck please help.

    1. Overall and reconstructed lathe moter to produce more parts per hour.
    2. Yearly computer maintenance contract.
    3. Constructed walls to divide the store office.
    4. Poured a concrete walkway between the offices.
    5. Semiannual maintenance checkup on the press.
    6. Installed a new adapter system on the lathe.
    7. Fixed a leak in the roof of the office building.
    8. Paid the city to trim the trees in front of the office building.
    pready's Avatar
    pready Posts: 3,197, Reputation: 207
    Ultra Member
    		  
    #2

    Jul 1, 2009, 03:53 PM

    2, 5, 7, & 8 are revenue expenses.

    The others are capital expenses becaiuse they are improving an asset or extending the life of an asset.
    ycarvo's Avatar
    ycarvo Posts: 4, Reputation: 1
    New Member
    		  
    #3

    Aug 14, 2009, 10:30 PM
    Hi Pready.

    I don't want to bother you but in case you can help me with my homework of Benetton Group case, I will appreciate a lot. My email [email protected]
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