Concept:Capital expenditure is money spent on acquiring or improving fixed assets that will benefit the council for more than one year.
Explanation:From the 2008 details, identify the items that are capital in nature.
Hospital beds worth
#8,000 are long-term assets.
An ambulance worth
#13,000 is also a long-term asset.
Both items are not consumed within the year, so they are classified as capital expenditure.
Add them together:
#8,000+#13,000=#21,000.
Revenue or recurrent expenses are excluded because the question asks only for capital expenditure.
Answer:The capital expenditure is
#21,000.
Therefore, the correct option is B.