Depreciation expense on the building for the year was $45,000. Because the building was increasing in value during the year, the controller decided not to record any depreciation expense in the current year.

INSTRUCTIONS

1. Who are the users of Fusters' financial statements and what are their financial reporting needs.
2. Assuming the company follows ASPE, provide a GAAP supported-case specific analysis for this scenario
3. What is your recommendation? Explain the impact on your recommendation to the users of these financial statements.