Learning Goal 2
P11–1 Classification of expenditures Given the following list of outlays, indicate whether each is normally considered a capital expenditure or an operating expenditure. Explain your answers.
An outlay of $27,600 for a marketing research report
A $275 outlay for an office machine
An outlay of $1,750,000 to purchase copyrights from an author
A $175,000 investment in a portfolio of marketable securities
An outlay of $4,000,000 for a major research and development program
An outlay of $3,200 for a new machine ...