Asked by Adrian Badillo on May 29, 2024
Verified
Which of the following costs incurred subsequent to the acquisition of a machine would be appropriately accounted for by debiting the accumulated depreciation account related to the machine?
A) the cost of cleaning and lubricating the machine
B) the cost of replacing the motor on the machine when the cost of the original motor is not known
C) the cost of moving the machine to another manufacturing plant
D) the cost of a new attachment to the machine that provides for more output per unit of time
Accumulated Depreciation
The total amount of depreciation expense that has been recorded for an asset since its acquisition, reflecting its reduction in value over time.
Attachment
The legal process of seizing a debtor's property or assets to satisfy a judgment or debt.
- Understand the impact of enhancements to assets on their depreciation and valuation.
Verified Answer
ZK
Zybrea KnightJun 04, 2024
Final Answer :
B
Explanation :
The cost of replacing a component of a machine (like a motor) when the original cost is not known is accounted for by debiting the accumulated depreciation account. This approach removes the depreciated cost of the old component and recognizes the expenditure on the new component, effectively updating the asset's book value.
Learning Objectives
- Understand the impact of enhancements to assets on their depreciation and valuation.