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An Expenditure Made in Connection with a Machine Being Used

Question 125

Multiple Choice

An expenditure made in connection with a machine being used by an enterprise should be


A) expensed immediately if it merely extends the useful life but does not improve the quality.
B) expensed immediately if it merely improves the quality but does not extend the useful life.
C) capitalized if it maintains the machine in normal operating condition.
D) capitalized if it increases the quantity of units produced by the machine.

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