Which of the following subsequent expenditures would be capitalized?
A)Ordinary repair.
B)Costs that increase the service life of an asset.
C)Routine maintenance.

Question

Quizplus · Accepted Answer

Costs that increase the service life of an asset are considered capital expenditures and should be capitalized. Ordinary repairs and routine maintenance are considered normal operating expenses and should be expensed.

Which of the Following Subsequent Expenditures Would Be Capitalized