Bearcat, Inc. has recently acquired new equipment for use in its manufacturing operations. Some components of the equipment are subject to significant wear and must be replaced, on average, once every three years at a cost of $$150,000.$ The chief financial officer $($CFO$)$ of Bearcat has elected to accrue the maintenance cost in advance by debiting Maintenance Expense at a rate of $$50,000$ per year.

Required: Research the FASB Accounting Standards Codification. $1)$ Determine the appropriate treatment of the equipment maintenance costs. Did Bearcat record this properly? $2)$ Identify the appropriate section of the Codification to support your response.

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