The cost of the vehicles include the purchase price and other necessary expenditures made to bring them to their intended uses. If the expenditure made for vehicles extends the useful life of the vehicle and/ or increases the capacity, like modification or engine renewal, then these expenditures will be capitalized. But the regular maintenance expenditures such as oil change or minor engine repairs will be recorded as period expenses. As can also be understood from the information given, the correct answer is C. Expenditures made for oil change and minor engine repairs will be recorded as period expenses. Expenditures made for modification and engine renewal extend the useful life of the vehicle and/ or increase the capacity, then these expenditures will be capitalized.