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Assume that the value of diagnostic equipment suddenly falls because of technological obsolescence. How is the balance sheet adjusted to preserve the accounting identity? 1)
Assume that the value of diagnostic equipment suddenly falls because of technological obsolescence. How is the balance sheet adjusted to preserve the accounting identity?
1) Short-term liabilities are reduced.
2) Long-term liabilities are reduced.
3) Equity is reduced.
4) Inventories are reduced.
5) Cash is reduced.
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