Company A makes some expenditures for the machine. Purchase price is included in the cost of machinery. Company B makes an expenditure for 25,000 TL for the machine in order to increase the production capacity of the machine. As you remember, if the expenditure increases the capacity or productivity of the asset and/or extends the useful life then this expenditure will be added to the cost of the asset. Therefore, Machinery and Equipment account is debited in this transaction. Company C pays 5,000 TL for the annual maintenance of the machine. In this transaction, the expenditure does neither extend the useful life of the machine nor increases the capacity or productivity. So, these kinds of expenditures will not be added to the cost of the machine. They will be recorded as period expense. To shorten the distance between suppliers, Company D decides to move the factory to Organized Industrial Zone and pays 150,000 TL for disassembling and reassembling of the machines and 100.000 TL. for the transportation. Even though the expenditures are made for the assets to bring them to their intended uses, they will be recorded as period expenses; because this criterion is applied just for the initial recognition of the assets. When the assets are ready to use, only the expenditure that will affect their useful lives and capacity will be added to the cost. Otherwise they will be recorded as a period expense.

As can also be understood from the information given the correct answer is B. Company A and Company B can include the expenditures mentioned in the cost of machinery and equipment, but Company C and Company D can record their expenditures as a period expense.