Question

Which of the following would be considered "expenditures subsequent to acquisition" for a building? (Select all that apply.)

a.Cost of installing solar panels after three months of use of the building
b.Repairing a major roof leak three years after use

Answer 1

Expenditures subsequent to acquisition for a building include the cost of installing solar panels after three months of use and repairing a major roof leak three years after use.

Step-by-step explanation:

Expenditures subsequent to acquisition refer to the costs incurred after the initial purchase or acquisition of an asset, such as a building. Based on the provided options, the following would be considered expenditures subsequent to acquisition:

• Cost of installing solar panels after three months of use of the building: This cost is incurred after the acquisition of the building and represents an additional expense.
• Repairing a major roof leak three years after use: Similarly, this repair cost is an expenditure incurred after acquiring the building.