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Commerce · Q150

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Graduate and Post Graduate · Commerce · question 150

Q150

Which of the following expenses should not be treated as capital expenditure?

A.
Expenses paid on installation of a plant
B.
Cost of dismantling a building in case a new building is to be constructed on the land
C.
Legal expenses incurred to defend a suit related to title of patent. The suit has been lost
Answer
D.
The fees paid to engineer who constructed the plant

Answer: Option C

Solution

Answer: Option C
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