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Costs and Expenses
The following costs are incurred by a retailer:
1. Point-of-sale systems in a retail store
2. An ad in the yellow pages
3. An inventory-control computer software system
4. Shipping merchandise for resale to chain outlets
Required
For each cost, explain whether all of the cost or only a portion of the cost would appear as an expense on the income statement for the period in which the cost was incurred. If not all of the cost would appear on the income statement for that period, explain why not.
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