_________________________ Expenditures That Make an Item of Property, Plant and Equipment

question 162

Essay

_________________________ expenditures that make an item of property, plant and equipment more productive; they often involve adding a component to an asset or replacing one of its old components with a better one, and do not always increase an asset's life.

---

Definitions:

Life Estate

An estate in land in which the right to possession is based upon a person’s lifetime.

Life Estate

A legal right to use and derive benefit from property for the duration of one's life, after which control reverts to another party.

Fee Simple

A type of freehold ownership where the owner has the greatest possible rights over the land forever.

Prescriptive Right

A right acquired through long-term use, such as the right to cross someone else's land, established by consistent and uninterrupted use over a period prescribed by law.