Thare Co. incurred the following costs related to trucks and vans used in operating its delivery…

Thare Co. incurred the following costs related to trucks and vans used in operating its

delivery service:

1. Changed the oil and greased the joints of all the trucks and vans.

2. Installed security systems on four of the newer trucks.

3. Changed the radiator fluid on a truck that had been in service for the past four years.

4. Installed a hydraulic lift to a van.

5. Removed a two-way radio from one of the trucks and installed a new radio with a

greater range of communication.

6. Overhauled the engine on one of the trucks that had been purchased three years ago.

7. Tinted the back and side windows of one of the vans to discourage theft of contents.

8. Repaired a flat tire on one of the vans.

9. Rebuilt the transmission on one of the vans that had been driven 40,000 miles. The van

was no longer under warranty.

10. Replaced the trucks’ suspension system with a new suspension system that allows for

the delivery of heavier loads.

Classify each of the costs as a capital expenditure or a revenue expenditure.

 

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