Paid $46,000 cash to replace a motor on equipment that extends its useful life by four years. Paid $230 cash per truck for the cost of their annual tune-ups. Paid $184 for the monthly cost of replacement filters on an air-conditioning system. Completed an addition to a building for $258,750 cash. 1. Classify the above transactions as either a revenue expenditure or a capital expenditure. 2. Prepare the journal entries to record transactions a and d.

Russell's is considering purchasing $697,400 of equipment for a four-year project. the equipment falls in the five-year macrs class with annual percentages of .2, .32, .192, .1152, .1152, and .0576 for years 1 to 6, respectively. at the end of the project the equipment can be sold for an estimated $135,000. the required return is 13.2 percent and the tax rate is 23 percent. what is the amount of the aftertax salvage value of the equipment assuming no bonus depreciation is taken