Which of the Following Are Capital Expenditures and Which Are

question 23

Essay

Which of the following are capital expenditures and which are ordinary and necessary business expenses?
(a.) Costs incurred to make improvements to a building to make it accessible to handicapped citizens as mandated by federal law.
(b.) Costs incurred to convert an office building into a night club. (c.) Costs incurred to train new employees.
(d.) Costs to repair a leak in the roof of an office building.

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Definitions:

Functional Need

The basic or essential requirement that consumers seek to fulfill with a product or service, often related to its practical or utilitarian aspect.

High-Involvement

Pertains to purchase decisions that carry a higher risk and require more thought and information gathering by consumers due to their significance.

Deeper Processing

A method of learning or memorization that involves meaningful analysis of information, leading to stronger recall.

Cognitive

Relates to the processes of the mind involved in learning, thinking, reasoning, and understanding.