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Why are the costs of long-lived assets capitalized when incurred and then depreciated or amortized over subsequent accounting cycles? To reduce the federal income tax
Why are the costs of long-lived assets capitalized when incurred and then depreciated or amortized over subsequent accounting cycles?
To reduce the federal income tax liability | ||
To aid management in cash-flow analysis | ||
To match the costs of production with the periods of its useful life | ||
To adhere to the accounting constraint of conservatism |
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