Keyser Company

Keyser Company

5.     Immediately after a used truck is acquired, a new motor is installed at a total cost of $3,850. Is this a capital expenditure or revenue expenditure?

6.     Keyser Company purchased a machine that has a manufacturer’s suggested life of 20 years. The company plans to use the machine on a special project that will last 12 years. At the completion of the project, the machine will be sold. Over how many years should the machine be    depreciated





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