O E None of the above Unanswered a Save Multiple choice question 5 An improvement made to a machine increased its fair market value and its production capacity by 25% without extending the machine's useful life. The cost of the improvement should be O A expensed O B debited to accumulated depreciation O C capitalized in the equipment account O D allocated between accumulated depreciation and the equipment account O E None of the above Unanswered Unanswered Save Multiple choice question 6 Lower of cost or net realizable value is A most conservative if applied to the total inventory O B most conservative if applied to major categories of inventory O C most conservative if applied to individual items of inventory O D must be applied to major categories for taxes None of the above are true Unanswered B Save - Multiple choice question 7 Due tudy dls. 10 p our Multiple choice question 7 The cost of land does not include O A costs of grading, filling, draining, and clearing O B costs of improvements with limited lives O C legal fees paid for services rendered to help with purchase of the land O D taxes assumed upon purchase O E All of the above are capitalized as acquisition cost of land Unanswered a Save Multiple choice question 8 "Loss due to decline in inventory will occur in the following section of the income statement