The cost of plant assets should include all of the normal and reasonable expenditures necessary to get the asset in place and ready for its intended use, including repairs to damages incurred after installationA. TrueB. False

False (B)

Explanation:

The cost of plant assets : it include all costs necessary to bring the asset to working condition for its intended use. This would include not only its original purchase price but also costs of site preparation, delivery and handling, installation, related professional fees for architects and engineers, and the estimated cost of dismantling and removing the asset and restoring the site.

Cost of repairs to damage doesn't constitute improvement on the value of the assets, instead it is just to maintain its value. Hence, it will be expensed in income statement and not capitalized.