Rhino Co calculates depreciation using the straight-line method. It purchases an asset for $180,000. This asset is depreciated over eight years and has a residual value of $20,000.What is the net book value of the asset after six years?
A. $80,000
B. $60,000
C. $100,000
D. $40,000
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Are the following items of expenditure examples of capital expenditure or revenue expenditure?Purchase of building
A. Revenue expenditure
B. Capital expenditure
Paying rent on a building
A. Revenue expenditure
B. Capital expenditure
Paying employees
A. Revenue expenditure
B. Capital expenditure
Repair of door to building
A. Revenue expenditure
B. Capital expenditure
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