Fred,IncOwns a Delivery Truck

question 24

Multiple Choice

Fred,Inc.owns a delivery truck.Which of the following costs,associated with the truck,will be capitalized and depreciated?

• A)modification for new use
• B)change of oil filters
• C)replacement of tires
• D)normal engine repair

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Definitions:

Filters

Devices or processes used to remove impurities or separate substances.

Urea

A waste product formed in the liver during the breakdown of proteins, excreted in urine.

Urethra

A tube that connects the urinary bladder to the urinary meatus for the removal of fluids from the body.

Kidney Stone

Hard deposits made of minerals and salts that form inside the kidneys, often causing pain when passing through the urinary tract.