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Essay

Equipment & Improvements

Essay specific features

 

Issue:

Business

 

Written by:

Marilyn W

 

Date added:

July 27, 2015

 

Level:

University

 

Grade:

A

 

No of pages / words:

2 / 354

 

Was viewed:

4571 times

 

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Essay content:

The quality of the goods produced must be enhanced. To explain further, there are four major types of expenditures that may be incurred after an asset has been acquired. These are classified as additions, improvements, rearrangements, or repairs. Additions, such as adding on to an existing building or installing a fire alarm system, are capitalized since a new asset has been created and the useful life of the asset is now increased...
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Improvements are substitutions of a better asset for the one currently used, such as replacing a wood roof with a metal roof. A replacement is the substitution of a similar asset, such as replacing a wood roof with a wood roof. Since these expenditures increase the future service potential of the asset, they should be capitalized...
displayed 300 characters

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