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A separate company is taking a fresh look at it's financial statements. Since the Company's property is worth far more today than when they bought
A separate company is taking a fresh look at it's financial statements. Since the Company's property is worth far more today than when they bought it, the President and Company Accountants agree that it makes no sense to continue to depreciate their building. They plan to insist to their auditors that this expense not be shown on the Income Statement shown to their bank. What will be the response of their auditors? Is this proposed treatment okay under GAAP? Why or why not?
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