Given the following list of outlays, indicate whether each is normally considere

Question

Given the following list of outlays, indicate whether each is normally considered a capital expense or an operating expense. Explain your answers

A. initial lease payment of $5,000 for electronic point of sale cash register system

B. an outlay of $20,000 to purchase patient rights from an inventor

C. an outlay of $80,000 for a major research and development program

D. an $80,000 investment in a portflolio of marketable solutions

E. a $300 outlay for an office machine

F. an outlay of $2000 for a new machine tool

G. an outlay of 240,000 for a new building

H. an outlay of $1000 for a marketing research report

Explanation / Answer

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