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At the beginning of the current year, a new vehicle was purchased for $36 000. The vehicle had an estimated useful life of 4 years.
At the beginning of the current year, a new vehicle was purchased for $36 000. The vehicle had an estimated useful life of 4 years. Depreciation expense for the year was recorded as follows in order to avoid reporting a loss:
Depreciation expense 2000
Accumulated depreciation vehicle 2000
Determine which accounting violated, explain why and indicate the correct treatment.
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