Answer:
The correct answer is letter "A": replacing an engine in a company car.
Explanation:
Capital Expenditures refers to the company's expenditure on physical assets such as buildings or equipment. Capital expenditure is unusual and can not be deducted from income for tax purposes; instead, the value of capital expenditure is added to the assets of the company and the value is reduced annually by depreciation and amortization.
Therefore, replacing an engine in a company car is a necessary, unexpected expense the firm has to incur.
