An entity installed a new production facility and incurred a number of expenses at the point of installation. The entity's accountant is arguing that most expenses do not qualify for capitalization. Included in those expenses are initial operating losses. These should be

A. Deferred and amortized over a reasonable period of time

B. Expenses and charged to the income statement

C. Capitalized as part of the cost of plant as a directly attributable costs

D. Taken to retained earnings since it is unreasonable to present it as part of the current year's income statement.

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