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A business owner purchased a delivery vehicle and made these payments:
| Item | Amount ($) |
|---|---|
| Delivery vehicle purchase price | 28,000 |
| Fitting shelves inside the vehicle | 3,000 |
| Painting business logo on the vehicle | 2,000 |
What was the total capital expenditure?
Option C ($31,000) is correct.
Capital expenditure includes costs that bring a non-current asset into use or improve its capacity:
- Vehicle purchase price: $28,000
- Fitting shelves (improves functionality): $3,000
Total CapEx = $31,000
Painting the logo ($2,000) is revenue expenditure โ a marketing cost that does not add to the asset's useful life.
When dichloromethane (DCM) and water (H$_2$O) are used together for differential extraction, which statement correctly describes their behaviour in a separating funnel?
In solvent extraction, liquids separate into layers based on density.
- Density of DCM (CH$_2$Cl$_2$) $\approx 1.33\ \text{g/mL}$ โ denser than water.
- Density of water $\approx 1.00\ \text{g/mL}$.
- DCM and water are immiscible โ they do not dissolve in each other.
Since DCM is denser, it sinks to the bottom, and water stays on top. They separate cleanly โ no colloidal mixture forms.
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