A company purchases a remote building site for computer operations.The building will be suitable for use after some expenditures.The wiring must be replaced to computer specifications.The roof is leaky and must be replaced.All rooms must be repainted and recarpeted and there will also be some plumbing work done.Which of the following statements is true?

Question

Quizplus · Accepted Answer

The cost of replacing the roof is considered a capital improvement, which increases the value of the building and is therefore included in the building's cost. Other costs like wiring, repainting, and recarpeting are also improvements and necessary for the building's intended use, typically capitalized and included in the building's cost.

A Company Purchases a Remote Building Site for Computer Operations