ACC 304 Experience Tradition / tutorialrank.com ACC 304 Experience Tradition / tutorialrank.com | Page 139

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.

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.