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. I and II are expensed

b. III and IV are capitalised

c. All the above are correct

d. I want to leave this answer blank

e. IV are capitalised