An improvement made to a machine increased its fair value and its production capacity. The cost of the improvement should be debited to ________.
A) expense
B) accumulated depreciation
C) equipment
D) intangible assets

Question

Quizplus · Accepted Answer

The cost of the improvement should be debited to equipment because it increases the machine's value and production capacity, thus enhancing its future economic benefits.

An Improvement Made to a Machine Increased Its Fair Value