Question

Draft a one-page response in the form of a business memo to your president discussing your recommendation on the President’s suggestion to capitalize the maintenance costs and record the costs as a long-term asset. Support your decision with addressing the accounting issue, the parties affected and what factors you considered to make your decision. Your memo will be graded based on the written communication, critical thinking and ethics rubrics.

Answer 1

Answer :-

Subject : - Recommendation to capitalize the Maintainance costs and reward the costs as a long term asset.

Based on the recent conversations we had about profit and a net income gain for the current financial year and the asset management and to manage the expressions of share holders and enployees for them to earn bonus. Component this year i will be useful to capitalize on the maintainance costs. This is a Beneficial method for taking advantage of the costs that are connected with Getting the asset for use in this case it is the inportant maintenance costs.