Additions and improvements to a plant asset that increase the asset's operating efficiency, productive capacity, or expected useful life are generally expensed in the period incurred.

Question

Quizplus · Accepted Answer

Additions and improvements to a plant asset that increase its operating efficiency, productive capacity or expected useful life should be capitalized and depreciated over their useful life, not expensed in the period incurred.

Additions and Improvements to a Plant Asset That Increase the Asset's