Early in January $2022,$ Tellco Incorporated acquired a new machine and incurred $$8,000$ of interest, installation, and overhead costs that should have been capitalized but were expensed. The company earned net operating income of $$103,000$ on average total assets of $$771,000$ for $2022.$ Assume that the total cost of the new machine will be depreciated over $8$ years using the straight$-$line method.

Required:

a$.$ Calculate the ROI for Tellco for $2022.$

b$.$ Calculate the ROI for Tellco for $2022,$ assuming that the $$8,000$ had been capitalized and depreciated over $8$ years using the straight$-$line method. $($Hint: There is an effect on net operating income and average assets.$)$

c$.$ Given your answers to parts a and $b,$ why would the company want to account for this expenditure as an expense?

d$.$ Assuming that the $$8,000$ is capitalized, what will be the effect on ROI for $2023$ and subsequent years, compared to expensing the interest, installation, and overhead costs in $2022?$

Answer is complete but not entirely correct.

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Required B