n March 10, 2021, S Incorporated paid property taxes of 240,000 for the calendar year 2021. On April 10, 2021, S Incorporated made 300,000 unanticipated major repairs and 100,000 regular maintenance to its equipment. As of January 1, 2021, the equipment still has 8 years remaining useful life. Assets are depreciated using the straight-line method without salvage value. S is currently preparing their quarterly financial statement ending June 30, 2021. Which of the following statements is/are true? I. Property taxes to be recognized in the second quarter shall be 60,000 II. The repairs and maintenance pertaining to the equipment shall not be allocated to the succeeding quarters but must be shared between the first and the second quarters. III. The repairs and maintenance pertaining to the equipment shall all be recognized in the second quarter IV. The regular maintenance shall be allocated to the succeeding quarters but the unanticipated major repairs shall be recognized in full in the second quarter. a. I and IV only b. I only c. I and III only d. II only e. Answer not among the choices
n March 10, 2021, S Incorporated paid property taxes of 240,000 for the calendar year 2021. On April 10, 2021, S Incorporated made 300,000 unanticipated major repairs and 100,000 regular maintenance to its equipment. As of January 1, 2021, the equipment still has 8 years remaining useful life. Assets are
I. Property taxes to be recognized in the second quarter shall be 60,000
II. The repairs and maintenance pertaining to the equipment shall not be allocated to the succeeding quarters but must be shared between the first and the second quarters.
III. The repairs and maintenance pertaining to the equipment shall all be recognized in the second quarter
IV. The regular maintenance shall be allocated to the succeeding quarters but the unanticipated major repairs shall be recognized in full in the second quarter.
I and IV only
I only
I and III only
II only
Answer not among the choices
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