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d. A replacement
P58. In accounting for plant assets, which of the following outlays
made subsequent to acquisition should be fully expensed in the period
the expenditure is made?
a. Expenditure made to increase the efficiency or effectiveness of an
existing asset
b. Expenditure made to extend the useful life of an existing asset
beyond the time frame originally anticipated
c. Expenditure made to maintain an existing asset so that it can
function in the manner intended
d. Expenditure made to add new asset services
S59. An expenditure made in connection with a machine being used
by an enterprise should be
a. expensed immediately if it merely extends the useful life but does
not improve the quality.
b. expensed immediately if it merely improves the quality but does
not extend the useful life.
c. capitalized if it maintains the machine in normal operating
condition.
d. capitalized if it increases the quantity of units produced by the
machine.
S60. When a plant asset is disposed of, a gain or loss may result.
The gain or loss would be classified as an extraordinary item on the
income statement if it resulted from