Phillip purchased a machine for his business last year. It cost $50,000. The machine required a skilled operator, who was a worker earning $2,000 per month. How will Phillip treat the cost of the machine and the wages of the skilled operator in his books of accounts?
In his books of accounts, Phillip will record the machine as a(an) blank
and the wages paid to the skilled operator as a(n)--blank
1.
A) asset
B) liability
C) expense

2.
A)asset
B) expense
C) revenue