Intermediate Accounting (16th Edition)

Published by Wiley
ISBN 10: 1118743202
ISBN 13: 978-1-11874-320-1

Chapter 10 - Acquisition and Disposition of Property, Plant, and Equipment - Review and Practice - Questions - Page 531: 20

Answer

This was improper. The cost incurred had absolutely nothing to do with the machine. The expenditure incurred in settling the extra wages should be expensed.

Work Step by Step

The amount incurred acquiring the machinery will be capitalized.
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