At the beginning of the year, Kuma Corporation purchased a machinery for $20,000.00. At the end of t be year, the machinery is reported to have a fair value of $32,000. Kuma's Controller recoded depreciation expense of $12,000 for the year, the decline in machines value. Why is this an incorrect approach to measure depreciation? Explain. What is a depreciation base (depreciable value) and a depletion base? Briefly explain