Chapter 10, Problem 2QS

To determine

Plant Assets:

Also referred as fixed assets or long term assets, are assets with a useful life of more than one year and are generally subjected to depreciation. They are tangible in nature and add value to the business by generating revenues and profits from production and selling of products services.

Capitalized Costs:

Capitalized costs are expenses which are added to the cost of fixed assets and include expenses incurred to bring the fixed asset in working state. For example installation expenses, delivery expenses

Expensed Cost:

Expensed costs are routine business expenses to run business operations. It includes repair and maintenance expenses.

To identify: Given below is the categorization of expenses as expenses or capitalized