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When Using PP&E as the Forecast Driver for Depreciation,which of the Following

Question 15

Multiple Choice

When using PP&E as the forecast driver for depreciation,which of the following is most accurate?


A) From both an ideal and a practical standpoint,the driver should be net PP&E.
B) From both an ideal and a practical standpoint,the driver should be gross PP&E.
C) Ideally,the driver should be net PP&E,but practically the driver should be gross PP&E.
D) Ideally,the driver should be gross PP&E,but practically the driver should be net PP&E.

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