Presented below is information related to Cramer, Inc.

Comment on the appropriateness of the accounting procedures followed by Cramer, Inc.

Depreciation expense on the building for the year was $$60,000.$ Because the building was increasing in value during the year, the controller decided to charge the depreciation expense to retained earnings instead of to net income. The following entry is recorded.

Retained Earnings

$60,000$

Accumulated Depreciation$-$Buildings

$60,000$