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In the intercompany transfer of depreciable assets, it is likely that the acquiring company may be making different use of the asset than did the

In the intercompany transfer of depreciable assets, it is likely that the acquiring company may be making different use of the asset than did the seller. As such, the salvage value and/or the expected useful life of the asset may be changed. Is it appropriate for the acquirer to make these changes and redetermine depreciation? What impact does this have on the consolidation process?

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