Prepare a data model containing entities and cardinality between those entities to support the tasks and user views depicted in the given situation.

Question

When a company has post-acquisition expenditures related to Property, Plant, and Equipment it must determine whether the amount should be expensed as an ordinary repair or capitalized as a major repair, addition, or betterment. This requires considering the nature of the expenditure and the use of judgment. Many companies use a threshold amount. Any expenditure below the threshold is expensed. Items over the threshold are examined and a decision is made about whether to expense or capitalize the item. This approach is justified by both materiality and considering costs and benefits. For example, a company with $94 million in net property, plant, and equipment and $250 million of operating expenses would not consider a $100 repair as material. Plus, if the company had to spend thousands of dollars examining every repair expenditure, the costs of doing the analysis could easily outweigh the benefits. SouthEast Equipment has a large number of machines and equipment that are available for…

Answer 1

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Chapter 9, Problem 22P

1.

To determine

Prepare a data model containing entities and cardinality between those entities to support the tasks and user views depicted in the given situation.

2.

To determine

Prepare normalized model with attributes, keys, and cardinalities.

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