Question 1: Often the Plant Assets are divided into Land and Buildings, Fixtures and Equipment, Computer Hardware and Leasehold Improvements. What does the component Leasehold Improvements consist of?
Question 2: Why do you think that Congress allows companies to use an accelerated method of depreciation to reduce the income tax for the current year? Will the income tax for future years increase as a result of the acceleration in the current year? Why or why not?
Question 3: How does a capital expenditure differ from a revenue expenditure?