Capitalizing versus expensing  For each of the following expenditures, indicate the type of account (asset or expense) in

a. $30,000 annual cost of routine repair and maintenance expenditures for a fleet of d
b. $12,000,000 cost to develop a coal mine, from which an estimated 1 million tons of
c. $248,000 cost to replace the roof on a building.
d. $140,000 cost of a radio and television advertising campaign to introduce a new pr
e. $8,000 cost of grading and leveling land so that a building can be constructed.

A. Capitalized, routine maintenance, ordinary/necessary maintenance.

B. Expense, developement for a coal mine. Research and development costs are alw
C. Expense, repair cost. This expenditure is not ordinary.
D. Expense, advertising costs, like research and development costs, are always treat
E. Capitalized, the grading and leveling land is before the asset (building) is construct
ded. Explain your answers.

counting purposes.