The question contains two sentences. One is statement (A) and the other is Reason (R). You have to examine both the sentence carefully and decide whether statement (A) and reason (R) correct and if so, reason is the correct explanation of statement. Mark these items in the answer sheet: Statement (A): Wages paid for installation of new machine is treated as capital expenditure. Reason (R): It is related to giving work to new asset.

The correct answer is: B. Both (A) and (R) are true but R is not correct explanation of A.

Statement (A) is true. Wages paid for installation of a new machine is treated as capital expenditure because it is an expense that is incurred in order to bring a new asset into use.

Reason (R) is also true. It is related to giving work to a new asset. However, it is not a correct explanation of Statement (A). The correct explanation is that wages paid for installation of a new machine is treated as capital expenditure because it is an expense that is incurred in order to bring a new asset into use.

Here is a more detailed explanation of each option:

• Option A: Both (A) and (R) are true and R is correct explanation of A. This option is incorrect because Reason (R) is not a correct explanation of Statement (A).
• Option B: Both (A) and (R) are true but R is not correct explanation of A. This option is correct because Statement (A) is true and Reason (R) is true, but Reason (R) is not a correct explanation of Statement (A).
• Option C: A is correct but R is wrong. This option is incorrect because Reason (R) is true.
• Option D: A is wrong but R is correct. This option is incorrect because Statement (A) is true.