Capitalisation vs Expensing Doubt. Help me out please

CFA Level I
#1

Screenshot 2025-06-23 at 9.54.09 AM
Screenshot 2025-06-23 at 9.54.09 AM1506×1242 109 KB

#2

What value did you calculate?

How did you do the calculation?

#3

I was unable to answer the question. The explanation for the question didn’t help me much. Hence asked it here.