1.[單選題]A manufaturing business receives an invoice on 30 June 20X5 for work done on its machine. $15,600 of the cost is actually for a machine upgrade to improve its efficiency. The financial department do not notice and charge the whole amount to maintenance costs. Machinery is depreciated at 20% per annum on a straight-line basis, with a proportional charge in the years of acquisition and disposal. By what amount will the profit for the year to 30 November 20X5 be understated?
2.[單選題]Uber bought a new energy machine. The cost of this machine was $90,000 and the installation expense was $3,000. The staff training costs on how to use the machine, was $2,000. Cost of testing was $1,000 before using the machine to ensure the machine work properly.
What should be recognised in the statement of financial position about the cost of the machine?