Multiple Choice
Exeter Corporation purchased a piece of equipment with a price of $80,000 on March 1, 2018.The amounts below are related to the equipment purchase.Match the items below and explain why each revenue expenditure is not capitalized.
-Terms of the purchase were 2/10, net 30.Edison paid for the purchase on March 8.
A) This item should be included as part of the cost of the equipment.
B) This item should be considered a revenue expenditure.
Correct Answer:
Verified
Correct Answer:
Verified
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