Problem
The U.S. tax laws provide for the depreciation of equipment based on original cost. Yet owing to substantial inflation, the replacement cost of equipment is often much greater than the original cost. What effect, if any, does this have on a firm's ability to buy new equipment to replace old equipment?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.