Which of the following purchased assets would not be capitalized?
A) Factory machine used to fabricate part for new product to be introduced
B) Building constructed as a warehouse for a company's inventory
C) Machine used to test the durability of high tech chair in development for a technology company. The machine will not be used to test any other products.
D) Building constructed to house management and administrative personnel

Question

Quizplus · Accepted Answer

Items purchased for research and development purposes that have no alternative future uses are not capitalized and are expensed immediately.

Which of the Following Purchased Assets Would Not Be Capitalized