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Current Attempt in Progress The following expenses have been made to plant and equipment during 2025. Indicate the proper accounting treatment for each acquisition: a.

Current Attempt in Progress The following expenses have been made to plant and equipment during 2025. Indicate the proper accounting treatment for each acquisition: a. Replace all the tires on a delivery truck. b. Replacement of an old furnace in the factory. The old furnace was purchased for $100,000 and had accumulated depreciation of $95,000. c. Replace the motor in the delivery truck. The carrying value of the old motor is not known. The replacement will extend the life of the truck only. d. Schedule major overhauls of aircraft every 3 years. e. Paint the entire corporate office. f. Production line is rearranged and a new component is installed. This will increase productivity on the production line.
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The following expenses have been made to plant and equipment during 2025. Indicate the proper accounting treatment for each acquisition: a. Replace all the tires on a delivery truck. b. Replacement of an old furnace in the factory. The old furnace was purchased for $100,000 and had accumulated depreciation of $95,000. c. Replace the motor in the delivery truck. The carrying value of the old motor is not known. The replacement will extend the life of the truck only. d. Schedule major overhauls of aircraft every 3 years. e. Paint the entire corporate office. f. Production line is rearranged and a new component is installed. This will increase productivity on the production line. Adjust accumulated depreciation Capitalize Expense

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