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Transaction: equipment to be replaced in 3 years at an expected cost of 60,000( the aquisition of teh euipment is 45,000) What does the 60,000

Transaction: equipment to be replaced in 3 years at an expected cost of 60,000( the aquisition of teh euipment is 45,000)

What does the 60,000 really mean? Does this amount affect income statement?

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