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If an expenditure related to a depreciable asset is incorrectly treated as a capital expenditure, instead of as repairs and maintenance expense, which of the
If an expenditure related to a depreciable asset is incorrectly treated as a capital expenditure, instead of as repairs and maintenance expense, which of the following statements is true?
- The current year's net income will be higher and future depreciation expense will be higher.
- The current year's net income will be lower and future depreciation expense will be higher.
- The current year's net income will be lower and future depreciation expense will be lower.
- The current year's net income will be higher and future depreciation expense will be lower.
Please explain the reasoning.
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