Question: Select which items would be treated as a Betterment and capitalized when spending money on an asset: Starmall spends $160,000 to replace a section of

Select which items would be treated as a Betterment and capitalized when spending money on an asset:

  1. Starmall spends $160,000 to replace a section of the roof, extending its expected life by 10 years.

  2. The power supply for a computer server is replaced when it failed due to overheating.

  3. Target a company to do asphalt patching in the parking lot. The parking lot was installed in 2015 with an estimate of 30 years of useful life, providing maintenance is done annually.

  4. U-Haul replaces the tires on a 3 year old rental trailer because they have been worn out.

  5. Lakehead University adds two floors to existing residences, allowing for an extra 100 students to live on campus.

  6. Apex Security spends $2,000 to repair a vehicle that was damaged in an accident. The repairs are required to allow Apex to use it for the rest of its estimated useful life.

  7. Heartbeat Hot Sauce expands its warehouse to store an additional 3,000 cases of sauce.

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