Two variables have a positive linear correlation. Does the dependent variable increase or decrease as the independent variable
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Based on the costs to ABC Print Co. to acquire the printing presses, the costs that should be debited to assets are:
- Fee paid to factory representative for installation - Yes
- Freight - Yes
- Insurance while in transit - Yes
- New parts to replace those damaged in unloading -No
- Sales tax on purchase price - Yes
- Special foundation - Yes
- Fees paid to attorney to review purchase agreement - Yes
- Freight - Yes
- Installation - Yes
- Repair of damage incurred in reconditioning the press-No
- Replacement of worn-out parts - Yes
- Vandalism repairs during installation-No
The costs that will go to assets are only those that have to do with the purchasing of the asset, its transportation to the business, and the costs to install it.
The costs going to assets will not include repairs to damage and new parts that may have been purchased to replace damaged parts.
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