An Improvement Made to a Machine Increased Its Fair Value

question 48

Multiple Choice

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 machinery account.
• D) allocated between accumulated depreciation and the machinery account.

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Definitions:

Skill Categories

The classification of skills into groups based on similarities, such as technical, interpersonal, and analytical skills, for the purpose of evaluation and development.

Structural Considerations

Factors related to the organizational, physical, or logical arrangement of a system or enterprise that need to be taken into account when planning or evaluating.

Management Function

The organizational activities of planning, organizing, leading, and controlling to achieve goals efficiently and effectively.

Chain Of Command

The formal line of authority within an organization, defining who reports to whom, from the highest levels of leadership down to frontline employees.