Question

The acquisition costs of property, plant, and equipment do not include:

Answer 1

Answer:

d. Maintenance costs during the first 30 days of use

Explanation:

The acquisition costs of property, plant, and equipment includes all the cost necessary to make the item of property, plant, and equipment available for use.

In other words, these cost includes the ordinary and necessary costs to bring the asset to its desired condition and location for use.

This cost therefore includes net invoice price, legal fees, delivery charges, installation, and any applicable sales tax.

The right option is d. Maintenance costs during the first 30 days of use.