Thank You

Discussion Prompt The invoice price of a machine is $50,000. Various other costs relating to the machine's acquisition and installation, including transportation, electrical wiringI special base. and so on, amount to $7,500. The machine has an estimated life of 10 years. with no residual value at the end of that period. The owner of the business suggests that the incidental costs of $7,500 be charged to expense immediately for the following reasons: - If the machine should be sold. these costs cannot be recovered in the sales price. - Because of the possibility of changing demand and supply levels, the inclusion of the $7,500 in the machinery account on the books will not necessarily result in a closer approximation of the market price of this asset over the years. - Charging the $7,500 to expense immediately will reduce federal income taxes. - Discuss each of the points raised by the owner of the business. Be sure to support your assertions with sound reasoning. research. and rules provided by GAAP