How Should $45,000 Spent to Obtain Greater Productive Efficiency for a Machine

question 100

Multiple Choice

How should $45,000 spent to obtain greater productive efficiency for a machine with a carrying value of $80,000 be accounted for?

• A)Capitalized, then depreciated during current and subsequent periods.
• B)Expensed in the period in which the cost occurs.
• C)Charged to accumulated depreciation with no change in the depreciation rate.
• D)Charged to retained earnings.

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Definitions:

Ozone Destroyer

Substances, typically man-made chemicals like CFCs, that lead to the depletion of the ozone layer in the Earth's stratosphere.

Deforestation

The large-scale removal of forest land or tree plantations, often resulting in damage to the quality of the land.

Soil Nutrient Loss

The depletion of essential minerals and compounds from soil, often due to factors like erosion, over-farming, or leaching, which can reduce soil fertility and agricultural productivity.

Global Climate Change

An ongoing trend toward warmer temperatures and shifts in climate patterns worldwide; caused by a rise in greenhouse gases.