Question: Hanoi Foods incurs the following expenditures during the current fiscal year:
(1) annual maintenance on its machinery, $8,900;
(2) remodeling of offices, $42,000;
(3) improvement of the shipping and receiving area, resulting in an increase in productivity, $25,000; and
(4) addition of a security system to the manufacturing facility, $35,000. How should Hanoi account for each of these expenditures?