The replacement of a major component increased the productive capacity of production equipment from 10 units per hour to 18 units per hour.The expenditure should be debited to:
A)Repairs.
B)Equipment.
C)Maintenance.
D)Gain from repairs.

Question

Quizplus · Accepted Answer

The replacement of a major component resulted in a significant increase in the productive capacity of production equipment. This can be considered a major improvement rather than a repair or maintenance expense. Therefore, the expenditure should be debited to Equipment.

The Replacement of a Major Component Increased the Productive Capacity