The replacement of a major component increased the productive capacity of equipment from 10 units per hour to 18 units per hour. The expenditure for the replacement component should be debited to:

The replacement of a major component increased the productive capacity of equipment from 10 units per hour to 18 units per hour. The expenditure for the replacement component should be debited to:



A) Repairs Expense.

B) Maintenance Expense.

C) Equipment.

D) Gain from Repairs.


Answer: C


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