Under what circumstances are costs incurred after the acquisition of an asset (such as additions,improvements,or replacements),added to the asset's depreciable amount?
A) They provide future service potential.
B) They extend the useful life of the asset.
C) They increase either the quantity or quality of service rendered by the asset.
D) All of these

Question

Quizplus · Accepted Answer

Costs incurred after the acquisition of an asset (such as additions, improvements, or replacements) are added to the asset's depreciable amount if they provide future service potential, extend the useful life of the asset, or increase the quantity or quality of service rendered by the asset. Therefore, all of these choices apply.

Under What Circumstances Are Costs Incurred After the Acquisition of an Asset