The original capacity of the equipment is 10,000 units per year. After paying $2,500 to replace an important part, the company increases the capacity of equipment to 12,000 units per year. How does the company deal with the $2,500 expenditures? Group of answer choices Increase the repair expenses by $2,500 Credit the equipment account by $2,500 Increase the value of equipment by $2,500 Don’t need do anything for accounting purpose
The original capacity of the equipment is 10,000 units per year. After paying $2,500 to replace an important part, the company increases the capacity of equipment to 12,000 units per year. How does the company deal with the $2,500 expenditures? Group of answer choices Increase the repair expenses by $2,500 Credit the equipment account by $2,500 Increase the value of equipment by $2,500 Don’t need do anything for accounting purpose
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 7EB: An auto repair company needs a new machine that will check for defective sensors. The machine has an...
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The original capacity of the equipment is 10,000 units per year. After paying $2,500 to replace an important part, the company increases the capacity of equipment to 12,000 units per year. How does the company deal with the $2,500 expenditures?
Group of answer choices
Increase the repair expenses by $2,500
Credit the equipment account by $2,500
Increase the value of equipment by $2,500
Don’t need do anything for accounting purpose
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