Question

On January 1, year 1, Brecon Co. installed cabinets to display its merchandise in customers' stores. Brecon expects to use these cabinets for five years. Brecon's year 1 multistep income statement should include a. All of the cabinet costs in cost of goods sold. b. All of the cabinet costs in selling, general, and administrative expenses. c. One-fifth of the cabinet costs in selling, general, and administrative expenses. d. One-fifth of the cabinet costs in cost of goods sold

Answer 1

Answer:

C. One-fifth of the cabinet costs in selling, general, and administrative expenses

Explanation: