When a Company Replaces a Component of Property,plant,and Equipment,which Statement

question 13

Multiple Choice

When a company replaces a component of property,plant,and equipment,which statement below does not account for one of the steps in the process?

• A)The asset cost of the replaced component is credited.
• B)Book value of the replaced component is written off to depreciation expense.
• C)The identifiable direct costs associated with the new component are expensed in the current period.
• D)The identifiable direct costs associated with the new component are capitalized.

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