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Which of the Following Expenditures Should NOT Be Capitalized

Question 1

Multiple Choice

Which of the following expenditures should NOT be capitalized?


A) the costs of testing a new machine to get it ready for use
B) purchasing factory equipment with an estimated useful life of 7 years
C) purchasing a used truck with an estimated 40,000 miles of service life remaining
D) the costs of changing the oil in the company's fleet of delivery trucks

Correct Answer:

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