Which of the Following Would Be Expensed,rather Than Capitalized

question 123

Multiple Choice

Which of the following would be expensed,rather than capitalized?

• A) Oil change and lubrication
• B) Major engine overhaul
• C) Modification for new use
• D) Addition to storage capacity

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Definitions:

Gratuitous Basis

A situation where goods, services, or assets are given without receiving payment or consideration in return.

Customary Fee

A charge or payment that is considered typical or usual within a particular industry, market, or legal context based on long-standing practices.

Apparent Authority

A situation in which a reasonable person would understand that an agent had the authority to act, even if the agent didn't have such authority.

Express Agency

An agency relationship formed by explicit oral or written agreement between the agent and the principal.