What are expenditures to maintain the operating efficiency and expected productive life of the unit are expensed as incurred?

True or False?

Expenditures to maintain the operating efficiency and expected productive life of the unit are expensed as incurred.

Correct Answer = True

Explanation

This question is talking about ordinary and necessary  expenses as defined in the IRS tax code. An example would be a truck that needs its oil changed every 3 months or new tires after 50,000 miles. These expenses are not normally deferred and will be incurred at the time of the transaction.

 

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