Question 6 (5 points) Which of the following events should be capitalized as a fixed asset? i. An airline company changes the air filters on its airplanes. They are changed annually. ii. A manufacturer converts its factory equipment into hybrid equipment. This newly overhauled equipment should produce more products and use less electricity than the previous equipment. both should be capitalized Dionly i only uestion 7 (5 points) inflato hasketballs for which Question 7 (5 points) Data below is on Izzo Inc's two air compressors to inflate basketballs for which it uses straight line depreciation and there is no salvage value. Equipment Historical Cost Net Book Value Green Air Compressor $10,000 $2,000 White Air Compressor $10,000 $4,000 Which of the below is most likely TRUE about the two pieces of equipment? The White Air Compressor is relatively newer than the Green Air Compressor The Green Air Compressor is relatively newer than the White Air Compressor Both compressors appear to be the same age. Which of the following is i. Recognizing inventory at the lower of cost or market is an example conservatism principle. it. If the fair value of an asset becomes greater than the net book value of the asset, the firm should record a gain on the income statement ili. When an impairment loss occurs, the firm can choose whether to recognize the loss on their income statement or to defer the loss based on the preference of management Oi only all are true i and iii only Oi and ii only