Which of the following transactions is capital expenditure and which revenue expenditure? Tick the correct box. Capital Revenue (a) A bookseller buys a car for its director for $9,000. (b) In the first year, the car is depreciated by $900. (c) The business buys books for $1,500. (d) The business builds an extension for $7,600. (e) The original building is repainted, a job costing $1,200. (f) A new sales assistant is taken on and his salary in the first year is $10,000.

Which of the following transactions is capital expenditure and which revenue expenditure? Tick the correct box. Capital Revenue (a) A bookseller buys a car for its director for $9,000. (b) In the first year, the car is depreciated by $900. (c) The business buys books for $1,500. (d) The business builds an extension for $7,600. (e) The original building is repainted, a job costing $1,200. (f) A new sales assistant is taken on and his salary in the first year is $10,000.

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter9: Acquisitions Of Property

Section: Chapter Questions

Problem 46P

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