When a Company Replaces a Component of Property, Plant and Equipment

Multiple Choice

When a company replaces a component of property, plant and equipment, which statement below does not account for one of the steps in the process?

A) book value of the replaced component is written off to depreciation expense
B) the asset cost of the replaced component is credited
C) any cost to remove the old component is charged to expense
D) the identifiable direct costs associated with the new component are capitalized