Question

If an expenditure related to a depreciable asset is incorrectly treated as a capital expenditure, instead of as repairs and maintenance expense, which of the following statements is true?A. The current year's net income will be lower and future depreciation expense will be higher.
B. The current year's net income will be higher and future depreciation expense will be lower.
C. The current year's net income will be higher and future depreciation expense will be higher.
D. The current year's net income will be lower and future depreciation expense will be lower.

Answer 1

Answer:

The answer is letter C.

Explanation:

The current year's net income will be higher and future depreciation expense will be higher.