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    Intermediate Accounting Study Set 2
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    Exam 11: Property, Plant, and Equipment and Intangible Assets: Utilization and Disposition
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    The Replacement of a Major Component Increased the Productive Capacity
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The Replacement of a Major Component Increased the Productive Capacity

Question 39

Question 39

Multiple Choice

The replacement of a major component increased the productive capacity of production equipment from 10 units per hour to 18 units per hour. The expenditure should be debited to:


A) Repairs expense.
B) Maintenance expense.
C) Equipment.
D) Gain from repairs

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