c. The quality of assets must be increased.
d. Any one of these.
55. An improvement made to a machine increased its fair value and its production capacity by 25 % without extending the machine ' s useful life. The cost of the improvement should be
a. expensed.
b. debited to accumulated depreciation.
c. capitalized in the machine account.
d. allocated between accumulated depreciation and the machine account.
56. Which of the following is a capital expenditure?
a. Payment of an account payable
b. Retirement of bonds payable