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An accountant purchased a photocopier costing $5,000 for business use. The useful life of the photocopier is expected to be five years. The accounting firm

An accountant purchased a photocopier costing $5,000 for business use. The useful life of the photocopier is expected to be five years. The accounting firm has an average net income of $2,000,000 per annum. The accountant did not capitalize this expenditure as fixed asset.

Give comment on this accounting practice and support your answer with reference to the most relevant accounting concept.

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