TruColor Printers Inc.has purchased a sophisticated printing press for $1 million.Which of the following is most likely to be true about the printing press?

Question

Quizplus · Accepted Answer

The printing press is a long-term asset with a useful life of several years. Therefore, it will be subject to depreciation over its useful life, and the cost will be allocated to expense over time rather than being charged all at once in the year it is bought. Options B and C are incorrect as they do not align with the characteristics of the printing press. Option D is ambiguous and unrelated to the treatment of the printing press from an accounting perspective.