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Need help with this i would appreciate it alot need help with this i would appreciate it alot How to show why the client cant
Need help with this i would appreciate it alot
need help with this i would appreciate it alot
How to show why the client cant capitalise the repair cost and the concepts it goes agaisnt
Read the background information below. You need to analyse the information given in to identify the relevant points to include in your report to your client (as required bele a Context: You are an adviser to a sole proprietor of a business selling home-made toys. During the year, the regular maintenance checks on the machine were missed due to cost-cutting. Later, the sewing machine stopped working and was unusable for two months while it was repaired. You have told the client that the repairs are just a maintenance cost and must be treated as an expense. However, your client does not want to record the cost of repairs as an expense this year because this will push the business results into a loss. Instead, she wants to capitalise the repair cost so it will be included in future depreciation. Required Prepare a report to explain to your client the proper accounting treatment of th renairs to the sewing machine. Include in your report the relevant accountin Step by Step Solution
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