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Acme Enterprises Just Bought a New Manufacturing Machine

Question 206

Multiple Choice

Acme Enterprises just bought a new manufacturing machine.Which of these costs should not be capitalized?


A) The $500,000 invoice price of the machine
B) The $15,000 freight bill to deliver the machine to Acme's factory
C) The $8,000 cost of tearing down Acme's factory wall to get the machine inside
D) The $100 increase in monthly utility bills to operate the machine

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