Which of the Following Statements Is True with Respect to Capitalizing

question 75

Multiple Choice

Which of the following statements is true with respect to capitalizing asset costs?

• A)All additional costs related to acquiring an asset should be expensed.
• B)Land cannot be amortized so it should just be expensed when acquired.
• C)When costs are capitalized, the company gets the tax deduction immediately.
• D)Some small expenses related to the purchase of an asset can be expensed for simplicity.

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Definitions:

Nuclear Arms Reduction

Efforts and agreements aimed at reducing the number and capacity of nuclear weapons globally to prevent nuclear proliferation and decrease the likelihood of nuclear warfare.

United States

The United States is a federal republic in North America, comprised of 50 states, known for its significant influence on global politics, economy, and culture, and for its leadership in democratic values.

Berlin Uprising

A major revolt in East Berlin in 1953 by workers and citizens against the government of the German Democratic Republic (East Germany), brutally suppressed by Soviet forces.

East German Government

The government of the German Democratic Republic (East Germany), a socialist state that existed from 1949 to 1990, aligned with the Soviet bloc.