Purchasing a machine with a cost of $60,000 that is expected to last five years will result in an expense of $10,000 in the year of purchase.

Name: Purchasing a machine with a cost of $60,000 that is expected to last five years will result in an expense of $10,000 in the year of purchase.
Brand: Quizplus
Rating: 4.9 (39 reviews)

Question

Quizplus · Accepted Answer

The cost of the machine would be capitalized and depreciated over its useful life of five years, not expensed entirely in the year of purchase.

Purchasing a Machine with a Cost of $60,000 That Is