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A key generally accepted accounting principle is conservatism (i.e., the process of opting for accounting methods and processes that strive not to overstate assets or

A key generally accepted accounting principle is conservatism (i.e., the process of opting for accounting methods and processes that strive not to overstate assets or firm profits). A firm can choose to capitalize or expense certain fixed asset acquisitions.

What would be the conservative approach in this situation?

Explain your answer.

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