David Justice Company incurred the following expenditures related to the purchase and use of a new building that will be used as the growing company's corporate headquarters in Toronto, Canada

Required: Put an X in the appropriate box to indicate which expenditures should be capitalized and which should be expensed:

Expenditure Capitalize Expense
$560,000 spent for building materials (wood & brick)
$256,000 spent for labor costs
$78,000 architect's fee
$80,000 rent for equipment used in the construction
$52,000 annual utilities costs to operate the building
(in use on Feb 8)

$90 cost to fix a broken window (June 3)
$230 cost to clean a stained rug
$3,900 annual janitorial costs to keep the building clean

Expenditure Capitalize Expense
$560,000 spent for building materials (wood & brick) X
$256,000 spent for labor costs X
$78,000 architect's fee X
$80,000 rent for equipment used in the construction X
$52,000 annual utilities costs to operate the building
(in use on Feb 8)
X
$90 cost to fix a broken window (June 3) X
$230 cost to clean a stained rug X
$3,900 annual janitorial costs to keep the building clean X