Question

Which of the following below is an example of increasing the life on a fixed asset?...

Which of the following below is an example of increasing the life on a fixed asset?

a.cleaning the carpet in the front room of the building

b. tune up for a company truck

c. replacing an engine in a company car

d. replacing all burned out light bulbs in the factory

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Answer #1

Correct answer--------------c. replacing an engine in a company car

.

Tuning up the truck, cleaning the carpet in the front room of the building and replacing all burned out light bulbs in the factory are all general maintenance and repair expense and are not considered as having the effect if increasing the life of asset.

Replacing the engine in a car will improve the life of car since the expenditure is of high value and affects the working condition of car.

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