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I don't think it's an ethical dilemma if the company has a significant and legitimate reason for changing the useful life of an asset. However,
I don't think it's an ethical dilemma if the company has a significant and legitimate reason for changing the useful life of an asset. However, if the company is just trying to manipulate the useful life to improve the business financial situation, then yes, I think that is unethical. By extending the useful life of assets, companies can reduce depreciation expenses, thereby increasing reported net income. This manipulation may involve inaccurately estimating the remaining lifespan or overvaluing the residual value of assets. For example, Hertz extended the planned holding periods of its rental vehicles, artificially boosting net income by lowering depreciation expenses. Waste Management Inc. similarly inflated the useful lives and residual values of its garbage trucks to defer expenses and inflate reported profits. Transparency and adherence to accounting standards are essential to ensure accurate financial reporting and maintain stakeholders' trust
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