Question: 1. During the current year, Arkells Inc. made the following expenditures relating to plant machinery. Renovated five machines for $100,000 to improve efficiency in production

1. During the current year, Arkells Inc. made the following expenditures relating to plant machinery.

Renovated five machines for $100,000 to improve efficiency in production of their remaining useful life of five years

Low-cost repairs throughout the year totaled $70,000

Replaced a broken gear on a machine for $10,000

A. What amount should be expensed during the period?

B. What amount should be capitalized during the period?

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