Demmert Manufacturing Incurred the following expenditures during the current fiscal year: annual maintenance on Its equipment, $7,300; remodeling of offices, $23,900; rearrangement of the shipping and recelving area resulting in an Increase in productivity, $36,900; addition of a security system to the manufacturing facility, $26,900. How should Demmert account for each of these expenditures? Expenditure Amount Classification Accounting treatment Annual maintenance on equipment Remodeling of offices Rearrangement of the shipping and receiving area Addition of a security system addition improvement normal repairs and maintenance rearrangement

Definition Video Definition Accounting method wherein the cost of a tangible asset is spread over the asset's useful life. Depreciation usually denotes how much of the asset's value has been used up and is usually considered an operating expense. Depreciation occurs through normal wear and tear, obsolescence, accidents, etc. Video