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Unformatted text preview: Lowest inventory valuation This reverses during times of deflation o FIFO during inflation: Opposite of LIFO • Property, plant, and equipment (fixed assets): o Fixed, tangible, long-lived, capital assets o Depreciation: Straight line Accelerated Units of production o On B/S shown as book value: Original cost minus accumulated depreciation Books prefer straight line method Tax prefers accelerated method • Tax incentives for co. stimulating economy • Take tax savings and reinvest them o Fixed assets vs. current: For fixed, we can have different values for book and market values Tax benefits in US...
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