Problem 8-1 Capitalization and Depreciation (LO 8.1)

Indicate the definition of each of the following as it relates to the tax rules for capitalization of expenditures.

a.An amount paid to fix a material condition or defect that existed prior to acquisition or that arose while the property was created.

Adaptation or Bettermen or tRestorationBetterment

b.An expenditure that allows the property to be used in a new or different use.

Adaptation or Betterment or Restoration

c.The replacement of a major component, a substantial structural part, or combination of parts that make up a substantial component of the property.

Adaptation or Betterment or Restoration

Would you kindly assist and explain:) I'm grateful for your help :)