On September 10, 2007, Flint Co Neither the Attachment nor the Renovation Increased the Estimated Useful

question 50

Multiple Choice

On September 10, 2007, Flint Co.incurred the following costs for one of its printing presses: $\begin{array}{lr}\text { Purchase of attachment } & \$ 55,000 \\\text { Installation of attachment } & 5,000 \\\text { Replacement parts for renovation of press } & 18,000 \\\text { Labor and overhead in connection with renovation of press } & 7,000\end{array}$ Neither the attachment nor the renovation increased the estimated useful life of the press.However, the renovation resulted in significantly increased productivity.What amount of the costs should be capitalized?

• A)$0.
• B)$67,000.
• C)$78,000.
• D)$85,000.

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Definitions:

Critical Thinking

The objective analysis and evaluation of an issue in order to form a judgment, often characterized by clear and rational thinking.

Evidence-Based Management

The practice of using research-based facts to make decisions.

Contingency Thinking

The approach that describes actions as dependent on the nature of the situation; one size does not fit all.

Organizational Behavior

The study of individual and group dynamics within organizational settings, aiming to understand and improve workplace performance, motivation, and culture.