28 Which of the following subsequent expenditures would not

28. Which of the following subsequent expenditures would not be capitalized? A. Ordinary repairs and maintenance. B. Additions C. Improvements D. Expenditures that increase the useful life or efficiency of the asset. Rev. 1217

Solution

OPTION A- ORDINARY REPAIRS AND MAINTENANCE IS THE CORRECT ANSWER.

Ordinary expense will be recorded as expense in the current year. extra ordinary repairs are generally capitalized if useful life is increased by more than one year.