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one of the transaction confused me. Transaction: the company bought equipment at 45 for cash to get discount of 50. The equipment to be replaced
one of the transaction confused me.
Transaction: the company bought equipment at 45 for cash to get discount of 50. The equipment to be replaced in 3 years at an expected cost of 60.
What does this 60 mean? why it is even more than the acquisition cost 45. Why does it not affect income statement ( the answer to the question just ignores this 60, but I do not why?)
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