Week 5 RA - Financial Statement Case Page 547 1. There are...

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Financial Statement Case Page 547 1. There are three depreciation methods. A. Which depreciation method does Amazon.com use for reporting in the financial statement? According to the notes on page A-6 depreciation is recorded on a straight – line bases over the estimated useful lives of the assets (generally two years or less for assets such as internal-use software and our DVD rental library, tree years for our technology infrastructure, five years for futures and fixtures, and ten years for heavy equipment). Depreciations expense is generally classified within the corresponding operations expenses categories on the consolidated statements of operations, and certain assets, such as our DVD rental library, are amortized as “cost of sales.” B. What type of depreciation method does the company probably use for income tax purposes? According to page 519 in the text a special depreciation method called the modified accelerated cast recovery system is used for income tax proposes. C.
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Week 5 RA - Financial Statement Case Page 547 1. There are...

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