Jessica Brooks just slept through the class in which Professor Dominguez explained the concept of depreciation. Because the next test is scheduled for Wednesday, Jessica Brooks telephones Hanna Svensen to get her notes from the lecture. Hanna Svensen’s notes are concise: “Depreciation—Sounds like Greek to me.” Jessica Brooks next tries Tim Lake, who says he thinks depreciation is what happens when an asset wears out. David Coe is confident that depreciation is the process of building up a cash fund to replace an asset at the end of its useful life. Explain the concept of depreciation for Jessica Brooks. Evaluate the explanations of Tim Lake and David Coe. Be specific.
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