The Favre Company made the following expenditures related to its building:
$\begin{array}{lrr}
\text { Annual repainting of exterior } &\$1,700\
\text {Replacement of old fiberglass shingles with a fireproof tile roof } &33,000\
\text { Major improvements to electrical system required to run new machinery } &18,000
\end{array}$

The amount of the preceding expenditures that should be immediately expensed is:

Question

The Favre Company made the following expenditures related to its building:
$\begin{array}{lrr}
  \text { Annual repainting of exterior } &\$1,700\
 \text {Replacement of old fiberglass shingles with a fireproof tile roof   } &33,000\
 \text { Major improvements to electrical system required to run new machinery } &18,000
\end{array}$

The amount of the preceding expenditures that should be immediately expensed is:

Quizplus · Accepted Answer

The only expenditure that should be immediately expensed is repairs and maintenance, which is $1,700. The other expenditures should be capitalized because they improve the building's overall value and benefit future periods.

The Favre Company Made the Following Expenditures Related to Its