Q
Which of the following expenses should not be treated as capital expenditure?
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A
A. Expenses paid on installation of a plant.
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B
B. Cost of dismantling a building in case a new building is to be constructed on the land
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C
C. Legal expenses incurred to defend a suit related to title of patent.
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D
D. The fees paid to engineer who constructed the plant.
Correct Answer:
C. C. Legal expenses incurred to defend a suit related to title of patent.
