Expenditures that extend a plant asset's useful life should be capitalized.

Name: Expenditures that extend a plant asset's useful life should be capitalized.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Expenditures that extend a plant asset's useful life should be added to the cost of the asset and capitalized rather than being expensed immediately. This increases the asset's book value and depreciation expense is calculated on the new, higher value over the extended useful life.

Expenditures That Extend a Plant Asset's Useful Life Should Be