Question $11(2$ points$)$

Chia Pet, Inc. owns a machine that it uses in its manufacturing process. Chia purchased the machine $4$ years ago for $$100,000.$ The depreciation on the machine for the first $4$ years was calculated using the straight line method with no residual and a $5$ year useful life. During the fifth year, Chia spends $$10,000$ in cash on an overhaul of the machine which was starting to wear out. Which of the following is true with regard to the overhaul?

If the overhaul is determined to extend the useful life of the machine the $$10,000$ should be added to the machine account

If the overhaul is determined to only fix the machine so that it will operated normally, then the $$10,000$ will increase expenses

The recording of the overhaul will have no effect on the company's liabilities

All of the above are true with regard to the overhaul