Any cost incurred to bring a fixed asset to its working condition (like freight, installation, trial run) is capitalized (added to the cost of the asset) and treated as Capital Expenditure.

It is revenue in nature (advertising) but the benefit is expected to last for more than one year (new product launch). Hence, it is deferred and written off over 3-5 years. Note: Modern standards (AS 26) are stricter, often forcing this to be expensed immediately, but traditionally in exams, it is Deferred Revenue.

Maintenance is a recurring expense required to keep the asset in working condition. It does not increase the capacity or life of the asset, so it is Revenue Expenditure.

Legal expenses incurred to acquire or defend the title of a fixed asset are capitalized as part of the asset's cost. Legal fees for debt recovery would be Revenue Expenditure.

Repairs on a second-hand machine *before* it is put to use are capitalized because they are necessary to bring the asset into working condition.

Installation wages are a Capital Expenditure as they are necessary to bring the asset to use. Hence, they are added to the cost of the Machine.

According to Accounting Standards (AS 26 / Ind AS 38), research costs are expensed (Revenue) as incurred. Development costs can be capitalized (Capital) only if technical and commercial feasibility is demonstrated.

This is a tricky one. Legal costs to acquire an asset are Capital. Legal costs to maintain/defend the title of an existing asset are Revenue Expenditure, as they are for maintenance of the asset's status, not improvement.

If an expenditure increases the future economic benefits (efficiency, capacity, life) beyond the previously assessed standard of performance, it is Capital.

These are costs to bring the entity into existence. They are usually capitalized or treated as deferred revenue expenditure and written off over a period.

Expenses to put an old asset into usable condition (First repairs/whitewash) are capitalized. Subsequent whitewashing is Revenue.