Which of the following is an example of a capital expenditure?

• A. Replacing incandescent bulbs.
• B. Routine filter replacement.
• C. Roof replacement.
• D. Painting walls.

Answer: (C)

Capital expenditures are costs that add to the property's value or extend its useful life beyond the current condition. Replacing a roof fits this idea because a new roof protects the building, adds long-term value, and extends the structure’s life, making it a capital improvement rather than a routine upkeep expense.

Replacing incandescent bulbs is typically treated as routine maintenance and normal operating expense; it keeps the building functioning but doesn’t significantly extend life or increase value. Routine filter replacement is also ongoing maintenance, necessary to keep systems operating but not a long-term improvement. Painting walls is usually considered maintenance or cosmetic upkeep unless it’s part of a larger renovation that markedly increases the property’s life or value, so it’s not treated as a capital expenditure in the usual sense.

So, among the options, the roof replacement is the example that represents a capital expenditure.