Costs that are incurred after acquiring a piece of property, plant, or equipment are for a variety of reasons, ranging from routine repairs to major overhauls and improvements.The accountant's problem is to determine how these costs should be recorded.
Required:
Identify the two categories of expenditures in which these costs can be classified, and explain how the accountant determines which classification is appropriate.

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The Answer of Costs that are incurred after acquiring a piece of property, plant, or equipment are for a variety of reasons, ranging from routine repairs to major overhauls and improvements.The accountant's problem is to determine how these costs should be recorded.
Required:
Identify the two categories of expenditures in which these costs can be classified, and explain how the accountant determines which classification is appropriate.

Costs That Are Incurred After Acquiring a Piece of Property