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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:
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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