The cost of an engine tune-up is an example of which of the following expenditures after acquisition?

A) Ordinary repairs and maintenance.

B) Additions.

C) Improvements.

D) Capitalized costs.

Answer: A

Which of the following subsequent expenditures would not be capitalized?

A) Ordinary repairs and maintenance.

B) Additions.

C) Improvements.

D) Successful legal defense of intangible assets.

Answer: A

The cost of replacing a major component on a piece of equipment is an example of:

A) Repairs and maintenance.

B) Improvements.

C) Additions.

D) An expenditure that only benefits the current period.

Answer: B