Gevok Industries has just started business as a computer-based gaming company. Knowing that small computer businesses rarely remain in business longer than 5 years, Gevok depreciates all his assets for 5 years. The assets include a building, integrated circuit shaper, and vehicles. Is this ethical? What impact will this action have on net income? What if any is the correct action?© BrainMass Inc. brainmass.com June 4, 2020, 12:41 am ad1c9bdddf
Depreciation must be provided on assets depending upon the useful life of the asset.
The policy adopted by Gevok Industries to depreciate all assets based on the expected life of its business (and not on the basis of the expected life of the asset itself) is not correct and ...
The expert determines what if any is the correct action.