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What are the long-term financial implications of capital improvements?
What is the accounting treatment for capital improvements?
Why is the wording of 'modify' and 'improve capacity' significant in identifying capital improvements?
Which of the following is an example of an ordinary repair?
A company spends \$200 on greasing the gears of a machine. How should this transaction be recorded?
A company spends \$5,000 on a capital improvement for a machine. How does this affect the balance sheet and future depreciation?
What is the accounting treatment for capital improvements?
A company spends \$400 on cleaning a machine and \$2,500 on installing new software to improve its functionality. How should these transactions be categorized?
A company spends \$10,000 on a capital improvement for a building. How does this affect the balance sheet and future depreciation?
A company replaces worn gears in a machine for \$500 and modifies the machine to increase output capacity for \$2,000. How should these transactions be categorized?