MCQ Practice

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

Subject: AuditingTopic: Auditing
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.

D

The fees paid to engineer who constructed the plant.Government Agencies

Correct Answer: C