Which of the Following Would Not Be Included in the Machinery

question 10

Multiple Choice

Which of the following would not be included in the Machinery account?

• A) cost of a maintenance insurance plan after the machinery is up and running
• B) cost of transporting the machinery to its setup location
• C) cost of installing the machinery
• D) cost of insurance while the machinery is in transit

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Definitions:

Deductions

Expenses or amounts subtracted from gross income to reduce the taxable income.

FICA-OASDI

Refers to the Social Security portion of the Federal Insurance Contributions Act tax, covering both the Old Age, Survivors, and Disability Insurance.

Cumulative Earnings

The total amount of net income an entity has earned over its life, up to the current reporting date, not yet distributed to shareholders.

FICA-Medicare

A federal payroll (or employment) tax contribution towards Medicare, part of the FICA taxes in the United States.