Rationale for depreciating assets


Problem statement: Answer each of the folloeing questions:

1. What is the rationale for depreciating assets used in business? Do you agree with it?

2. Does the rationale have any implications on capital formation-that is, investments by big businesses?

3. Does it favor one group of taxpayers versua another?

4. Are there any economic, social, revenue, or polotical implications.

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Accounting Basics: Rationale for depreciating assets
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