A Company Paid $314,000 for a Machine That Was Expected

question 39

Essay

A company paid $314,000 for a machine that was expected to last five years and have a salvage value of $40,000.During the third year of the machine's life,$37,000 cash was paid for replacement parts that were expected to increase the machine's productivity by 10% each year.Prepare the journal entry to record the $37,000 cost incurred in the third year.

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Definitions:

Self-Presentational Motivation

The drive to control the impressions others have of us; motives underlying our desire to present ourselves in a certain way to others.

Social Self-Efficacy

A person's confidence in their ability to engage in and succeed at social interactions and relationships.

Negative Outcome Expectancies

The belief or anticipation that the consequences of undertaking a certain behavior or action will be adverse.

Clinical Psychology

A branch of psychology focused on diagnosing and treating mental illness, emotional disturbances, and dysfunctional behavior.