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What amount of the costs should be capitalized

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Reference no: EM133022247

Question - During Year 1, Danner Company incurred the following costs related to its delivery truck:

Tire replacement $1,000

Engine replacement 10,000

Purchase and installation of rear view cameras 2,000

Oil changes 200

Tires are replaced every 50,000 miles. The engine replacement extended the life of the truck by 5 years. The truck did not have rear view cameras before the installation. What amount of the above costs should be capitalized?

Reference no: EM133022247

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