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Fox Inc. acquired fixed assets for $500,000 in January 2022. Fox inappropriately expensed the entire purchase price, instead of capitalizing the cost for financial reporting.

Fox Inc. acquired fixed assets for $500,000 in January 2022. Fox inappropriately expensed the entire purchase price, instead of capitalizing the cost for financial reporting. The fixed assets have a 3-year useful life with no salvage value. Required: Explain the effect of this error on both ROA & the Cash Flow Statement for the next 3 years (2022 through 2024) (ignore taxes)?

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