ADMN 6310-Why is it important that we record large dollar purchases
Question # 00349238
Posted By:
Updated on: 07/30/2016 02:25 AM Due on: 07/30/2016
Why is it important that we record large dollar purchases of items with multi-year lives as long lived assets and not expense them immediately but instead depreciate them? How does that help accurate valuation of both the balance sheet over time and also the proper calculation of annual net income? How do we determine if the sale of a physical asset that we bought 5 years ago and have 50% depreciated ADDS or SUBTRACTS from net income in the year it is sold?
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Rating:
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Solution: ADMN 6310-Why is it important that we record large dollar purchases