Western Wholesale Foods incurs the following expenditures during the current fiscal year. How should Western account for each of these expenditures?Capitalize and depreciate over the useful life of the asset.ORExpense in the period incurred. 1.Salaries for the repair technicians, $154,000 2.Remodeling of the executive offices, $84,700 3.Annual maintenance costs related to its machinery, $70,400 4.Improvement of the production line resulting in an increase in productivity, $33,800 5.Addition of a sprinkler system to the manufacturing facility to reduce the risk of fire damage, $37,900

The expenses can be treated as revenue expense or capital expenditure.

Answered: Western Wholesale Foods incurs the…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter11: Long-term Assets

Section: Chapter Questions

Problem 4PA: During the current year, Arkells Inc. made the following expenditures relating to plant machinery. ...

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Western Wholesale Foods incurs the following expenditures during the current fiscal year. How should Western account for each of these expenditures?

Capitalize and depreciate over the useful life of the asset.

Expense in the period incurred.


1.	Salaries for the repair technicians, $154,000
2.	Remodeling of the executive offices, $84,700
3.	Annual maintenance costs related to its machinery, $70,400
4.	Improvement of the production line resulting in an increase in productivity, $33,800
5.	Addition of a sprinkler system to the manufacturing facility to reduce the risk of fire damage, $37,900

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