Is the president's proposal within the scope of GAAP? In making your decision, discuss the ircumstances, if any, under which use of the method would be reasonable and those, if any, under which it would not be reasonable. Discuss in detail. The president wants your advice on the following issues: . Do depreciation charges recover or create funds? Explain. Assume that the Internal Revenue Service accepts the proposed depreciation method in this case. If the proposed method were used for stockholder and tax reporting purposes, how would it affect the availability of cash flows generated by operations? A