You became the CEO of lzzo Incorporated in December of 2022. In 2022,lzzo spent$1M fixing...
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Accounting
You became the CEO of lzzo Incorporated in December of 2022. In 2022,lzzo spent$1M fixing some of its machinery.Since you just became CEO, you want lzzo to report a low net income in 2022. As a result,which of the below is most likely to be true? If the $1M is capitalized you would prefer lzzo uses straight line depreciation over accelerated depreciation. You would prefer that the $1M is considered"not ordinary"and therefore capitalized. You do not have a preference for how the $1M is recorded. You would prefer that the $1M is considered regular repair and maintenance.
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