During the year just ended,Salt Company made the following expenditures relating to its plant building:

How much should be charged to repair and maintenance expense during the year just ended?
A)$160,000
B)$216,000
C)$256,000
D)$328,000

Question

During the year just ended,Salt Company made the following expenditures relating to its plant building:

How much should be charged to repair and maintenance expense during the year just ended?
A)$160,000 
B)$216,000 
C)$256,000 
D)$328,000

Quizplus · Accepted Answer

The amount to be charged to repair and maintenance expense is the sum of repairs and maintenance and insurance on building, which equals $256,000. The other expenditures are capitalized as part of the cost of building the plant.

During the Year Just Ended,Salt Company Made the Following Expenditures