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Anderson Nuclear Power Plant will be Mothballed at the end of it's useful life (approximately 20 years) at great expense. The expense recognition principle requires

Anderson Nuclear Power Plant will be "Mothballed" at the end of it's useful life (approximately 20 years) at great expense. The expense recognition principle requires that expenses be recognized as assets are used up or liabilities are incurred. Accountants Ana Alicia and Ed Bradley argue whether it is better to allocate the expense of mothballing over the next 20 years or ignore it until mothballing occurs.

Questions:

A) What stakeholders should be considered?

B )What ehtical issue, if any, underlies the dispute?

C) What alternatives should be considered?

D) Assess the consequences of the alternatives

E) What decision would you recommend?

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