Topic 1: In a recent newspaper release, the president of Magnusson Company asserted that something has to be done about depreciation. The president said, “Depreciation does not come close to accumulating the cash needed to replace the asset at the end of its useful life.” What is your response to the president?
Please research and explain the reason companies have to depreciate fixed assets. Also, what companies do when fixed assets totally depreciated in the accounting books while the assets still work?
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