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1) Notsofast Inc. acquired land for $500,000, this is a material amount, on July 1, 2020. It erroneously recorded the full amount as an expense.

1) Notsofast Inc. acquired land for $500,000, this is a material amount, on July 1, 2020. It erroneously recorded the full amount as an expense. Explain 2 tasks Notsofast must do when it discovers the error in 2021.
2) Briefly explain the following statement. Depreciation is a process of cost allocation, not valuation.
3) Why is land not depreciated? What are land improvements? Why do we record land and land improvements separately?
4) Describe when a company would use the DDB method versus straight-line depreciation.

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