What happens to Apple's Income Statement at the start of Year 1 after a factory purchase?

When a company like Apple purchases a factory, the transaction primarily impacts the balance sheet rather than the income statement immediately. The cost of the factory is recorded as a capital asset, which is an investment that will provide benefits over time. This purchase does not directly affect revenue or expenses right at the moment of the acquisition because the factory will not immediately generate income or incur operational costs upon purchase.

Instead, the impact on the income statement will occur over time through depreciation. This means that although the factory itself doesn't cause immediate changes on the income statement when acquired, it will contribute to increased expenses in future periods due to depreciation. However, at the very start of Year 1, the acquisition itself does not reflect any changes in income or expenses, leading to the conclusion that there are no changes in the income statement immediately following the factory purchase.