Multiple Choice
Major Carmaker Co. plans to build a laboratory dedicated to testing car crashes. The company will not use the laboratory after the project is finished.
Under GAAP, how should this laboratory be accounted for?
A) Capitalized and depreciated
B) Expensed when acquired
C) Capitalized, but not depreciated
D) Depreciated and expensed
E) Capitalized at its original cost and then tested for impairment annually
Correct Answer:
Verified
Correct Answer:
Verified
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