Kellogg Furniture, Inc. has a delivery truck to deliver customer purchases to their homes. In April, Kellogg spent $1,875 for routine maintenance, including replacing the tires and tuning up the engine. In August, the engine in the truck suffered a major malfunction and needed to be replaced. Kellogg decided to spend $10,000 to have a new engine installed with plans to use the truck four more years than originally planned. The expenditures of $10,000 in August should be: capitalized as part of the cost of the asset. expensed when incurred. not recorded since it is not material in amount. debited to the Accumulated Deperciation account.

Kellogg Furniture, Inc. has a delivery truck to deliver customer purchases to their homes. In April, Kellogg spent $1,875 for routine maintenance, including replacing the tires and tuning up the engine. In August, the engine in the truck suffered a major malfunction and needed to be replaced. Kellogg decided to spend $10,000 to have a new engine installed with plans to use the truck four more years than originally planned. The expenditures of $10,000 in August should be: capitalized as part of the cost of the asset. expensed when incurred. not recorded since it is not material in amount. debited to the Accumulated Deperciation account