ntermediate Accounting 105 Please use GAAP concepts and explanations provided with examples. New machinery, which replaced a number of employees, was installed and put in operation in the last month of the fiscal year. The employees had been dismissed after payment of an extra month’s wages, and this amount was added to the cost of the machinery. Discuss the proprietary of the charge. If it was improper, describe the proper treatment.

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Chapter1: Financial Statements And Business Decisions
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Intermediate Accounting 105

Please use GAAP concepts and explanations provided with examples.

New machinery, which replaced a number of employees, was installed and put in operation in the last month of the fiscal year. The employees had been dismissed after payment of an extra month’s wages, and this amount was added to the cost of the machinery. Discuss the proprietary of the charge. If it was improper, describe the proper treatment. 

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