Which of the following pertaining to ordinary repairs isfalse?Multiple ChoiceThey include activities such as cleaning,lubricating, and changing oil.They are treated as expenses.They extend the useful life of an assetbeyond its original estimate by severalyears.They are expenditures to keep an asset ingood operating condition.Their costs are reported as expenses onthe current-period income statement.

Extraordinary repairs are expenses that can be capitalized that extend the useful life of the asset…

Answered: Which of the following pertaining to…

Which of the following pertaining to ordinary repairs is false? Multiple Choice O They include activities such as cleaning,

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter10: Cost Recovery On Property: Depreciation, Depletion, And Amortization

Section: Chapter Questions

Problem 4DQ

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Concept explainers

Property Insurance

Property insurance protects property from unforeseeable loss or damage and covers property owners' liability. Property insurance provides financial compensation to the property owner or renter in the event of damage or theft, as well as to someone other than the owner or renter if that person is injured on the property. Property insurance covers all risks of damage caused by theft, fire, flood, cyclones, lighting, and natural calamities, among other things. The primary goal of property insurance is to require the property owner to cover the loss. A monthly premium is paid to the insurance company, and in exchange, the insurance company pays for damage based on the agreement stated in the policy. Property insurance protects assets such as a vehicle, auto, car, rental home, house, and valuable property.

Question

Which of the following pertaining to ordinary repairs is
false?
Multiple Choice
They include activities such as cleaning,
lubricating, and changing oil.
They are treated as expenses.
They extend the useful life of an asset
beyond its original estimate by several
years.
They are expenditures to keep an asset in
good operating condition.
Their costs are reported as expenses on
the current-period income statement.

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