Fill This Form To Receive Instant Help
Fill This Form To Receive Instant Help
Homework answers / question archive / Indicate which of the following costs should be expensed when incurred
Indicate which of the following costs should be expensed when incurred.
a) $13,000 paid to rearrange and reinstall machinery.
b) $200,000 paid for addition to building.
c) $200 paid for tune-up and oil change on delivery truck.
d) $7,000 paid to replace a wooden floor with a concrete floor.
$2,000 paid for a major overhaul on a truck, which extends the useful life.
According to the our question
All are capital nature expenditure which should be include cost of asset not expenses but expense on tune up should be expense when incurred i.e.,
A.) Amount is considered material and original installation costs are unknown No
B.) According to this cost should not be expensed when the paid for addition to building is Incurred No
C.)Expensed as it is normal expenses Yes
D.) Capital Expenses, so not expensed No
E.) Increase the life of truck, so added to truck account No
