Requirement

Review the following accounting practices and indicate whether you believe that the practice is correct or incorrect. Justify your answer with an accounting$$ concept, principle, or assumption.

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Part $1$

Select the appropriate response using the following reference list.

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Accounting practice

Response

a$.$

Citera Company, a large multinational corporation, expensed the acquisition of a $$4,000$ computer system.

b$.$

Mason Manufacturing acquired a new metal stamping machine at a cost of $$50,000.$ Mason will depreciate the asset over its $10-$year useful life.

c$.$

Gabriel Grocery Stores needed to overhaul one of its stores at a cost of $$75,000.$ The company decided to expense this amount as repairs and maintenance.

d$.$

Dina Design Studios charged the $$600$ cost of a new laptop for the owner's daughter to office equipment expense.

e$.$

Walsh Water Services issues financial statements on both a quarterly and an annual basis to its shareholders.