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Ignoring any tax implications what is the effect on a company's balance sheet when depreciation expense is recognized? Total assets and shareholder's equity will decrease

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Ignoring any tax implications what is the effect on a company's balance sheet when depreciation expense is recognized? Total assets and shareholder's equity will decrease by the same amount. Shareholder's equity is unaffected. Total liabilities increase and shareholder's equity decreases by the same amount. This transaction affects only the income statement

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