Which of the following subsequent expenditures would not be capitalized?
A)Ordinary repairs and maintenance.
B)Additions.
C)Improvements.

Question

Quizplus · Accepted Answer

Ordinary repairs and maintenance expenses are considered a routine upkeep of the property and do not increase the property's value. Therefore, they are expensed and not capitalized. On the other hand, additions and improvements increase the property's value and would be capitalized.

Which of the Following Subsequent Expenditures Would Not Be Capitalized