A Major Overhaul Made to a Machine Increased Its Fair

question 79

Multiple Choice

A major overhaul 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.
• D) allocated between accumulated depreciation and the machine account.

---

Definitions:

Rorschach Inkblots

A psychological test in which subjects' perceptions of inkblots are recorded and analyzed using psychological interpretation or complex algorithms.

Projective Personality Tests

Psychological assessments where individuals respond to ambiguous stimuli, revealing hidden emotions and internal conflicts.

Rorschach Inkblots

An exam where participants' interpretations of inkblot images are documented and analyzed based on psychological theories.

Thematic Apperception Test

A projective psychological test in which subjects' perceptions of ambiguous images are used to uncover their underlying motives, feelings, and attitudes.