We talked about this briefly when we did the original transaction, but
the key question here is,
does this expenditure represent a capital improvement, or routine maintenance.
A capital improvement would be anything that increases the value of the building
or its useful life.
We would add that to the building account and depreciate it over time.
And we'd consider the cash flow and investing activity.
Routine maintenance is something you have to do no matter what.
It's already built in the assumptions about the value of the building and
its life.
It gets expensed immediately and that will be considered in an operating cash flow.
So that's the distinction, and
we're going to talk about it more later in the course.
Transaction number 6, Relic Spotter paid $120,000 cash to buy Metal Detectors.
Is that transaction operating, investing, or financing?