Which of the following must be capitalized by a business? a. Replacement of a windshield of a business truck that was broken in an accident. b. Amount paid for a covenant not to compete. c. Repair of a roof of a building used in business. d. Only "Repair of a roof of a building used in business" and "Amount paid for a covenant not to compete" must be capitalized. e."Replacement of a windshield of a business truck that was broken in an accident", "Repair of a roof of a building used in business", and "Amount paid for a covenant not to compete" can be expensed rather than capitalized.

Question

Cassius Haney

Business

18 July, 18:33

Which of the following must be capitalized by a business? a. Replacement of a windshield of a business truck that was broken in an accident. b. Amount paid for a covenant not to compete. c. Repair of a roof of a building used in business. d. Only "Repair of a roof of a building used in business" and "Amount paid for a covenant not to compete" must be capitalized. e."Replacement of a windshield of a business truck that was broken in an accident", "Repair of a roof of a building used in business", and "Amount paid for a covenant not to compete" can be expensed rather than capitalized.

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Answers (1)

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Merritt · Answer 1

b. Amount paid for a covenant not to compete.

Explanation:

All of these expenses, except for the covenant, can be deducted in the current tax year. The amortization period for the covenant is 15 years.