There are two main reasons why we need to deal with depreciation. Which of the below is one of these reasons?
A) The gain but not the loss when a capital asset is disposed
B) The loss but not the gain when a capital asset is disposed
C) The tax flow implications from the OCF
D) The tax rate implications from the OCF
Answer: C
Explanation: C) There are two main reasons why we need to deal with depreciation. They are the tax flow implications from the OCF and the gain or loss at disposal of a capital asset.
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