Question

Which of the following expenditures should be capitalized? Multiple Choice Research and development costs. Unsuccessful legal defense of an intangible asset. An improvement to a tangible asset. Ordinary repairs and maintenance.

Answer 1

An improvement to a tangible asset.

Step-by-step explanation:

correct option is An improvement to a tangible asset because If you spend money to replace the capital asset used in your business, that development cost should be large.

Additions to the building, resulting in an extension, extension, or extension of the useful life of the property are large.