Capital and Operating Expenditures
Response to the following problem:
A company incurs the following costs, which may be capital expenditures or operating expenditures.
1. Cost of installing machinery 6. Property taxes on land and buildings
2. Cost of moving machinery 7. Property taxes on land and buildings held for
3. Repairs as a result of an accident investment
4. Cost of major overhaul 8. Cost of rearranging offices
5. Installation of safety device as a result 9. Cost of repainting offices
of an OSHA inspection 10. Ordinary repairs
Required
1. How would the company record each of the costs under U.S. GAAP?
2. How would your answers change if the company uses IFRS?