Which of the following costs associated with long-lived assets are expensed (rather than capitalized)?
A)Extraordinary repairs and maintenance
B)Delivery costs
C)Interest on loans to purchase the assets
D)Installation costs

Question

Quizplus · Accepted Answer

The general rule for tangible assets under the cost principle is that all reasonable and necessary costs to acquire and prepare an asset for use (including installation costs)should be recorded as a cost of the asset.Interest on loans would be expensed.

Which of the Following Costs Associated with Long-Lived Assets Are