Intermediate Accounting $105$

May I have an answer that includes the use of GAAP concepts and explanations provided with examples?

Discussion:

New machinery, which replaced a number of employees, was installed and put in operation in the last month of the fiscal year. The employees had been dismissed after payment of an extra month$$s wages, and this amount was added to the cost of the machinery. Discuss the proprietary of the charge. If it was improper, describe the proper treatment.