Question
A company spent $5,000 to install a new theft-detection system in its headquarters. Management wasn't sure whether this cost should be capitalized to the building
A company spent $5,000 to install a new theft-detection system in its headquarters. Management wasn't sure whether this cost should be capitalized to the building account or expensed immediately. The CFO flipped a coin, it came up tails, so the company expensed these costs immediately.Which of the following would be incresed becase the CFO is expensing these costs immediately instead of capitalizing them? Do the journal entries for both expensing and capitalizing and use the differences to answer the question
Maintenance Expense
Cash from investing Activities
Buildings
Cash from Operations
Total Stockholder's equity
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