Additions and improvements to a long-lived asset that increase the asset's operating efficiency, productive capacity, or expected useful life are generally expensed in the period incurred.

Question

Quizplus · Accepted Answer

Additions and improvements to a long-lived asset that increase the asset's operating efficiency, productive capacity, or expected useful life are generally capitalized, not expensed, in the period incurred. This means the costs are added to the asset's book value and expensed over time through depreciation.

Additions and Improvements to a Long-Lived Asset That Increase the Asset's