1.

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
D. The fees paid to engineer who constructed the plant.
Answer» D. The fees paid to engineer who constructed the plant.


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