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Question

____________ is not included in the Cost of the assets for the purpose of depreciation.

A
Routine repair and maintenance
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B
Trial run cost
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C
Pre-commissioning expenses
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D
Installation and erection expenses
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Solution

The correct option is A Routine repair and maintenance
Routine repairs are revenue expenditure because they are charged directly to an account such as Repairs and Maintenance Expense. Hence, Routine repair and maintenance is not included in the cost of the assets for the purpose of depreciation.

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