Business FinancesQuestion 1220 of 1605
A contractor buys a $2,400 laptop, a $600 printer, and $150 of paper. Which is most likely expensed immediately rather than capitalized?
a.All must be depreciated over 5 years
b.The paper
c.The laptop
d.Only the printer
Explanation
Low-cost consumables like paper are expensed immediately. Equipment such as a laptop or printer may be capitalized and depreciated, though small-dollar items are often expensed under a de minimis policy or Section 179. The paper is clearly a current-period expense.
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