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ACC 205 Week 5 DQ 1 Fraud Case 9-1

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From Chapter 9, Fraud Case 9-1

When a business sells a fully depreciated asset for its salvage value, is a gain or loss recognized?

How do businesses determine what salvage values to use for their various assets? Are there “hard and fast” rules for salvage values?

How would an organization prevent the kind of fraud depicted here?


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