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For Each of the Following Independent Items, Indicate Whether the Item

Question 106

Essay

For each of the following independent items, indicate whether the item should be capitalized or expensed.Support your answer.
A) The roof is replaced on a warehouse.The old roof was leaking, but the rest of the warehouse is well maintained.
B) A fitness club closes for 2 days every year and brings in an outside service to empty the swimming pool and clean and repaint it.
C) All the desk chairs in the office area were replaced with more ergonomically designed ones.D) New snow tires were bought for all of the delivery trucks in the company's fleet.
E) Several offices in the company's head office were repainted.
F) New showroom was painted as part of the remodelling project that expanded the existing showroom.

Correct Answer:

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A) Capitalize - will extend the life of ...

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