Capital expenditure and revenue expenditure

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Explain clearly the difference between capital expenditure and revenue expenditure. State which of the following you would classify as capital expenditure, giving your reasons:

(a) Cost of building extension to factory.

(b) Purchase of extra filing cabinets for sales office.

(d) Cost of installing reconditioned engine in delivery van.

(e) Legal fees paid in connection with factory extension.

Reference no: EM131385671

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