An improvement made to a machine increased its fair value and its production capacity by 25% without extending the machine's useful life. The cost of the improvement should be
a. expensed.
b. debited to accumulated depreciation.
c. capitalized in the machine account.
d. allocated between accumulated depreciation and the machine account.
Answer: c. capitalized in the machine account.
Business
You might also like to view...
Filters do all of the following EXCEPT
A) confront companies about their products. B) collect and repackage content. C) maintain a steady objectivity. D) cross over into analysis. E) produce their own journalistic work.
Business
Functional specifications set out:
A) the purpose for which the product is required. B) all those aspects or characteristics of a product that are determined by its final use. C) how the product is to work. D) none of the above
Business