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Upon review by the accounting department, it turns out that the $900 spent for Research and Development was actually used to purchase a machine in
Upon review by the accounting department, it turns out that the $900 spent for Research and Development was actually used to purchase a machine in 2015 that they received, but wont start using until mid-2016. How (and how much) would this new information change the 2015 income statement? How (and how much) would this new information change the 12/31/2015 balance sheet? Would your answer related to the change to the income statement change if it turns out that they also have not yet paid the $900 bill for the machine?
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