Capital expenditure or an operating expenditure

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Given the following list of outlays, indicate whether each is normally considered a capital expenditure or an operating expenditure. 
Explain your answers.

a. An initial lease payment of $5,000 for electronic point-of-sale cash register systems.

b. An outlay of $20,000 to purchase patent rights from an inventor.

c. An outlay of $80,000 for a major research and development program.

d. An $80,000 investment in a portfolio of marketable securities.

e. A $300 outlay for an office machine.

f. An outlay of $2,000 for a new machine tool.

g. An outlay of $240,000 for a new building.

h. An outlay of $1,000 for a marketing research report.

Reference no: EM131108424

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