Question
Please help with the bolded section. Thank you! You have recently been hired as the Controller for a large publicly traded company that has experienced
Please help with the bolded section. Thank you!
You have recently been hired as the Controller for a large publicly traded company that has experienced significant operating losses for the past few years, which has caused a sharp decline in the companys stock price. The CFO has asked you to prepare a 2-3 page (double spaced) analysis discussing the following topics fully explain your responses with details and substance: 1) The company is anticipating purchases of significant property and equipment during the next 12 months. What are your considerations and recommendations on whether to use either straight-line depreciation method or the double-declining-balance depreciation method? In addition, the CFO has requested that all equipment, that generally needs to be replaced every 8-10 years, be depreciated over 20 years. What impact would that have on the Companys financial position? Are there any ethical concerns with this policy? What would you recommend?
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