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Manufacturing facilities in October 2018 JJ determined to increase its facility to support the new sports product line. The cost to expand and reconstruct the
Manufacturing facilities
- in October 2018 JJ determined to increase its facility to support the new sports product line. The cost to expand and reconstruct the plant was six million. The expenses were all capitalized to the cost of the plant and included the following:
- interest on the financing required
- machine required for the sports packaging process
- two hundred thousand for the licence for the new goods line.
- The licence for the new product line is issued annually by federal health inspectors for compliance with food safety regulations. The current licence expires in August 2020
Analyse the folowing situation using CPA hanbook in the following format: Issue, Handbook and analysis, Recommendations
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