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Accounting 26th Edition by Carl Warren,James Reeve,Jonathan Duchac
Edition 26ISBN: 978-1285743615Accounting 26th Edition by Carl Warren,James Reeve,Jonathan Duchac
Edition 26ISBN: 978-1285743615 Exercise 7
Nature of depreciation
Tri-City Ironworks Co. reported $44,500,000 for equipment and $29,800,000 for accumulated depreciation-equipment on its balance sheet.
Does this mean (a) that the replacement cost of the equipment is $44,500,000 and (b) that $29,800,000 is set aside in a special fund for the replacement of the equipment Explain.
Tri-City Ironworks Co. reported $44,500,000 for equipment and $29,800,000 for accumulated depreciation-equipment on its balance sheet.
Does this mean (a) that the replacement cost of the equipment is $44,500,000 and (b) that $29,800,000 is set aside in a special fund for the replacement of the equipment Explain.
Explanation
Verified
Verified
a. Depreciation does not measure a decli...
Accounting 26th Edition by Carl Warren,James Reeve,Jonathan Duchac
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