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Classifying expenditure as a capital or revenue expenditure

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Identify the factors that are considered in classifying expenditure as a capital or a revenue expenditure. Are there instances where it may be difficult to classify an expenditure as one or the other (e.g., the purchase of a wastebasket that has a useful life of 5 years and cost $10)? What basis would be used in a decision?

Reference no: EM13143777

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