Which of the Following Expenditures Must Be Capitalized for Tax

question 1

Multiple Choice

Which of the following expenditures must be capitalized for tax purposes?

• A) Intangible drilling and development costs
• B) Leasehold costs
• C) Research and development costs
• D) Advertising expenditures

---

Definitions:

Remedy

The means by which a violation of rights is compensated or the enforcement of rights is achieved, generally through legal proceedings.

Notification of Breach

A formal notice that a party to a contract has failed to perform an obligation, violating the terms of the agreement.

Measure of Damages

A method used in legal contexts to calculate the amount of compensation owed to a party as a result of loss or injury.

United Nations Convention

An international treaty or agreement formulated under the auspices of the United Nations, pertaining to various global issues.