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QUESTION THREE (20 marks) An accountant purchased a fax machine costing $500 for business use. The useful life of the calculator is expected to be

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QUESTION THREE (20 marks) An accountant purchased a fax machine costing $500 for business use. The useful life of the calculator is expected to be 5 years. The accountant did not capitalize this expenditure as fixed asset. Give comment on this accounting practice and support your answer with reference to the most relevant accounting concept

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