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If a company classifies an expenditure as a capital expenditure instead of an expense, which of the following will be false? Multiple Choice Net earnings
If a company classifies an expenditure as a capital expenditure instead of an expense, which of the following will be false?
Multiple Choice
Net earnings for the year of acquisition will be higher.
The initial cost basis of the asset will be higher.
Depreciation expense will be higher over the asset's life.
It will be expensed in the year in which the expenditure takes place.
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