Which of the following is an item of capital expenditure?
A)Research and development costs during the year
B)Interest on borrowed fund utilized for acquisition of Office Furniture
C)Installation charges paid in conjunction with the purchase of Office Equipment
D)Monthly rent of a machinery used in the business

Question

Quizplus · Accepted Answer

Installation charges paid in conjunction with the purchase of Office Equipment are considered capital expenditure because they are costs incurred to bring an asset into a condition where it can be used and are capitalized as part of the cost of the asset.

Which of the Following Is an Item of Capital Expenditure