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Cross Country Trucking Company recently replaced the oil filter on one of its cross country rigs. How should one account for this cost?
a. As a repair and maintenance expense.
b. As an increase in the cost of the truck.
c. As a reduction in accumulated depreciation associated with the truck.
d. As an intangible asset.
A. as a repair and maintenance expense
The answer is A. As a repair and maintenance expense.
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