McGraw-Hill's Taxation of Individuals and Business Entities 3rd Edition by Brian Spilker, Benjamin Ayers, John Robinson, Edmund Outslay, Ronald Worsham, John Barrick, Connie Weaver

Exercise 51

Graber Corporation runs a long-haul trucking business.Graber incurs the following expenses: replacement tires, oil changes, and a transmission overhaul.Which of these expenditures may be deducted currently and which must be capitalized? Explain.