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Indicate which of the following costs should be expensed when incurred. (I) 13,000 paid to rearrange and reorganize machinery. (II) 200 paid for tune-up and

Indicate which of the following costs should be expensed when incurred.

(I) 13,000 paid to rearrange and reorganize machinery.

(II) 200 paid for tune-up and oil change on a delivery truck.

(III) 7,000 paid to replace a wooden floor with a concrete floor.

(IV) 2,000 paid for a major overhaul on a truck.

Select one:

a. All the above are correct

b. IV are capitalised

c. III and IV are capitalised

d. I dont know

e. I and II are expensed

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