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Communication Case 11 2 Depreciation at A Recent Luncheon You Were Seated Next To MR Hopkins
Communication Case 11 2 Depreciation at A Recent Luncheon You Were Seated Next To MR Hopkins
Depreciation
At a recent luncheon, you were seated next to Mr. Hopkins, the president of a local company
that manufactures bicycle parts. He heard that you were a CPA and made the followin
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case-11-2-depreciation-at-a-recent-luncheon-you-were-seated-next-to-mr-hopkins
Depreciation
At a recent luncheon, you were seated next to Mr. Hopkins, the president of a local company
that manufactures bicycle parts. He heard that you were a CPA and made the following
comments to you:
At the conclusion of the luncheon, you promised to send him a short explanation of the rationale
for current depreciation practices.
Required:
Prepare a letter to Mr. Hopkins. Explain the accounting concept of depreciation and include a
brief example in your explanation showing that over the life of the asset the change in value
approach to depreciation and the allocation of cost approach will result in the same total effect
on income.
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