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The  Dictator  of  a  Small  Country  Has  Been  Removed  and  a

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The  dictator  of  a  small  country  has  been  removed  and  a  new  government  is  forming.  Among  the  first  task  for  the  new  government  is  to  review  and  revise  the c ountry's  laws.
The country's main industries are tourism and petroleum. A group representing the hospitality industry is participating in the law review process, as are groups representing the oil companies and military. The result of the process is that new laws allow the country's hotels to add casinos (but only to be patronized by foreign visitors) . Other new laws remove workplace restrictions for the oil companies and impose a requirement for all able-bodies males to serve in the military for two years. This scenario describes:


Definitions:

Upgrade Cost

The expense incurred to improve the quality, features, or performance of an asset, product, or system beyond its original specifications.

Overhaul

A comprehensive inspection, maintenance, and repair process to restore equipment, machines, or systems to optimum working condition.

Extraordinary Repairs

Large, infrequent expenditures that extend the useful life of an asset beyond its original forecast.

Straight-Line Method

The straight-line method is a depreciation technique that allocates an equal amount of depreciation each year over the useful life of an asset.

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