Question: Powerful, Greedy Enterprise, known as PG&E, is a public utility that operates several power plants to generate electric power and networks to distribute that power to its customers. As such, it is regulated by FERC and, accordingly, adopts the regulatory accounting method. In 20x1,PG&E spent tens of millions of dollars repairing and maintaining its turbine and network and capitalized such amounts on its AFS. May PG&E deduct these costs on its tax return, on the grounds that these expenditures do not result in a betterment, but are merely routine, normal, routine repairs and maintenance. a. Yes, because it deducts such amounts on its AFS. b. Yes, because these costs are normal routine repairs and maintenance. c. No, because these costs are so large they amount to an improvement. d. No, because PG&E is required by the regulatory accounting method to capitalize for tax purposes any amount it also capitalizes on its AFS.