Prior to Determining the Treatment of Capital Expenditures in the Calculation

Multiple Choice

Prior to determining the treatment of capital expenditures in the calculation of NOI, it is important to distinguish these costs from operating expenses. In contrast to operating expenses, capital expenditures:

A) add to the market value of the property
B) are deductible for tax purposes in the year in which they are paid.
C) are necessary to keep the property operating and competitive in its local market.
D) may include minor repairs that do not add to the property's useful life.