The ire code has changed and your buildings are now required to install a new sprinkler system.

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The ire code has changed and your buildings are now required to install a new sprinkler system. These systems do not add any value to the operations. How would the costs be treated, and what is the logic?

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Intermediate Accounting

ISBN: 978-0071339476

Volume 1, 6th Edition

Authors: Beechy Thomas, Conrod Joan, Farrell Elizabeth, McLeod Dick I

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Question Posted: Feb 17, 2015 08:11 AM

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The ire code has changed and your buildings are now required to install a new sprinkler system.

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These would be an involuntary safety cost These costs must be capitalized as ...View the full answer

Intermediate Accounting

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