Capital Expenditures for Asset Acquisition Steps:

• Define capital expenditure as costs to acquire, install, and prepare a long-term asset like a machine for use.
• List typical costs: purchase price (1) and delivery/installation (2) qualify as they enhance the asset's value and usability.
• Exclude operational costs like operator training (3), which is a revenue expenditure expensed immediately.
• Select option identifying only the non-capital cost.

Why D is correct:

• Per accounting standards (e.g., IAS 16), capital costs end at asset readiness; training is post-acquisition and not capitalized.

Why the others are wrong:

• A: Includes 1 and 2, both capital costs for acquisition.
• B: Includes 2, a capital cost like freight.
• C: 2 is a capital cost, not excluded.

Final answer: D