Queue,Incorporated Incurred the Following Expenditures for the Purchase and Use

question 22

Essay

Queue,Incorporated incurred the following expenditures for the purchase and use of a machine,which was placed into service on January 1,2011:
Required:
1.Determine the total costs that should be capitalized into the machine account.What is the total? Explain how you decided which costs to capitalize.
2.Determine the total operating expenses associated with using the machine for the year ended December 31,2011.Assume the machine has an estimated 5-year useful life and an $8,000 salvage value.Explain how you decided which costs to expense.

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Definitions:

Contingency Management

A behavior modification technique that rewards or punishes specific behaviors to encourage or discourage them, respectively.

Self-reinforcement Procedure

A technique in behavior modification where individuals reward themselves for reaching set goals or displaying desirable behaviors.

Satisfying State

A condition or feeling experienced after needs or desires are fulfilled, often used in theories of motivation and learning.

Reward

A motivational construct that refers to the positive outcomes or pleasure experienced after engaging in certain actions or behaviors.