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On June 1, Roadway's Trucking Company paid $9000 to overhaul the engine on a delivery...

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Accounting

On June 1, Roadway's Trucking Company paid $9000 to overhaul the engine on a delivery
truck to allow it to be used for two additional years. It also paid $8000 to change the storage
capacity of the truck so that it could haul more merchandise. Which of the following
statements is TRUE?
Both items are expenses.
The $9000 is an expense and the $8000 is a capital expenditure.
The $9000 is a capital expenditure and the $8000 is an expense.
Both items are capital expenditures.
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