Veronica agrees to sell 15 cases of DVDs to a local retail outlet at $120 for each case. Each case is to contain 100 DVDs. When the local retail outlet receives the cases and opens them, it finds that most of the cartons have only 75 DVDs. The retail outlet files a lawsuit against Veronica. During litigation, the retail outlet decides to settle the matter outside the court in order to reduce the expenses involved. Both parties finally agree to revise the rate of each carton to $100, with each carton containing 75 DVDs. The settlement between Veronica and the retail outlet is an example of .

About time delivery co. incurred the following costs related to trucks and vans used in operating its delivery service: classify each of the costs as a capital expenditure or a revenue expenditure. 1. changed the oil and greased the joints of all the trucks and vans. 2. changed the radiator fluid on a truck that had been in service for the past four years. 3. installed a hydraulic lift to a van. 4. installed security systems on four of the newer trucks. 5. overhaul the engine on one of the trucks purchased three years ago. 6. rebuilt the transmission on one of the vans that had been driven 40,000 miles. the van was no longer under warranty. 7. removed a two-way radio from one of the trucks and installed a new radio with a greater range of communication. 8. repaired a flat tire on one of the vans. 9. replaced a truck's suspension system with a new suspension system that allows for the delivery of heavier loads. 10. tinted the back and side windows of one of the vans to discourage theft of contents.