The Cost of a Major Overhaul of a Machine That

question 35

Multiple Choice

The cost of a major overhaul of a machine that extends its total useful life by four years would be:

• A) treated as an expense.
• B) added to the carrying amount of the asset causing future depreciation to be increased.
• C) charged to a separate asset account and depreciated over four years.
• D) cause an adjustment to prior years depreciation on the machine.

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Definitions:

Exclusionary Rule

A legal principle in the United States that prevents the government from using evidence gathered in violation of the Constitution in court.

Mapp

Relates to Mapp v. Ohio, a landmark Supreme Court case decided in 1961 that established the rule excluding illegally obtained evidence from being used in court under the Fourth Amendment.

Levels of Government

The division of government responsibilities into distinct branches (local, state, and federal) to prevent any one branch from exercising the core functions of another.

Exclusionary Rule

A legal principle in the United States that prohibits the use of evidence obtained in violation of the defendant's constitutional rights from being used in a court of law.