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On January 1, Year 2 Boothe Company Paid $12,000 Cash

Question 17

Multiple Choice

On January 1, Year 2 Boothe Company paid $12,000 cash to extend the useful life of a machine. Which of the following statements is true regarding the financial statement effects of this expenditure?


A) Book value of machine decreases
B) Retained earnings decreases
C) Book value of machine increases
D) Retained earnings increases

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