Answer the following questions in depth ....

1. Why do accountants have to classify items as capital expenditures? Why do you capitalize some items and expense others?
2. Is it true that the higher the depreciation, the lower the net income? If that is the case, why would we not want the lowest depreciation method so we can show the highest net income?
3. Why do we havevarious methods of depreciation? Isn't that encouraging misleading results?