A manufacturing company receives an invoice on 29 February 2002 for work done on one...
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Accounting
A manufacturing company receives an invoice on 29 February 2002 for work done on one of its machines. $25,500 of the cost is actually for a machine upgrade, which will improve efficiency. The accounts department does not notice and charge the whole amount to maintenance costs. Machinery is depreciated at 25% per annum on a straight-line basis, with a proportional charge in the years of acquisition and disposal. How will the income statement be affected?
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