A business has incurred following costs for the year. What is the amount of capital expenditure incurred during the year?

A business has incurred following costs for the year ended 31 December 2020.
(1) Extension in building = $1.5 million
(2) Repairs to building = $0.5 million
(3) Overhaul to machinery that increased production capacity = $1.2 million
What is the amount of capital expenditure incurred during the year?
(A) $ 1.5 million
(B) $ 2.0 million
(C) $ 2.7 million
(D) $ 3.2 million

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The detailed answer for the above question is provided below The answer is C 27 million ... View the full answer