Which of the following would be capitalised and depreciated,rather than expensed?

Question

Quizplus · Accepted Answer

Modification for new use involves a significant improvement in the asset's functionality, which results in its increased useful life and value. Therefore, it should be capitalized and depreciated over time rather than expensed immediately.

Answer: B (potentially)
 Whether or not a paint job can be capitalized and depreciated depends on the circumstances. If the paint job involves significant improvements to the asset's functionality, such as protecting it from weather damage, it could be capitalized and depreciated. However, if the paint job is merely cosmetic and does not extend the asset's useful life, it should be expensed immediately.

Answers A and D would typically be expensed immediately as they relate to routine maintenance and repairs that do not extend the asset's useful life or provide significant improvements in functionality.

Which of the Following Would Be Capitalised and Depreciated,rather Than