The Miami Company is deciding whether to purchase a new piece of equipment. The equipment costs $1,000,000 and the fee to transport and install the equipment is $20,000. We also expect to spend $50, 000 training our staff on the new equipment. Assume that this type of equipment is depreciated with straight - line depreciation over 5 years. How would we recognize the expenses associated with this investment on the income statement and balance sheet? A: $254 000 in exoenses and $1.020.000 capitalized on the balance sheet B: $270 000 in exoenses and $ 1:000.000 capitalized on the balance sheet C: $1.070.000 in expenses, nothing on the balance sheet D: $70.000 in expenses and $1.000.000 capitalized on the balance sheet

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budge…