The purpose of recording depreciation expense is to:

1. Provide cash necessary to replace long-lived fixed assets when they are used up
2. Match expenses with revenues
3. Record the Balance Sheet amount of fixed assets at their replacement value
4. None of the above

10. Which one of the following is the least likely reason a manufacturer may acquire an ownership interest in another competitors facility?

A. To exercise an active role in the business activities

B. To take advantage of operating and/or cost synergies

C. To benefit from an overvaluing of assets in the investee company

D. To take over an inefficient management team