Which of the following expenditures should be classified as a revenue expense?

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Amount spent on constructing a new manufacturing facilityLoss suffered while expanding the seating capacity of a hotelPenalty paid due to violation of a contract for the delivery of goodsCost of repairing a used machine after purchaseNone of the above

Explanation

Revenue expenditure refers to costs that are incurred in the normal course of business and are charged to the income statement. Among the options, the penalty paid for breaching a supply contract is a revenue expense, as it is a loss related to operational activities. Costs for new plant construction, losses on hotel expansion, and repairs to machinery are either capital expenditures or adjustments to asset value, not revenue expenses.