Final answer:
Replacing electrical wiring throughout a building is considered a capital expenditure and should be capitalized, not recorded as an expense, because it improves the building's value over a long term.
Step-by-step explanation:
The question asks whether replacing electrical wiring throughout a building should be considered an expense or capitalization. For accounting purposes, such expenditure is typically considered a capital investment rather than an expense. This is because it enhances the value of the building and its useful life, similar to other capital investments mentioned by the Census Bureau in its surveys. The initial cost of replacing the wiring provides a benefit over several years, as opposed to an expense which is completely consumed in the short term. Therefore, the replacement of electrical wiring should be capitalized, meaning it is added to the asset's value on the balance sheet and then depreciated over its useful life.