Question: Analysts cannot unequivocally accept the depreciation amount. One must try to estimate the age and efficiency of plant assets. It is also useful to compare

Analysts cannot unequivocally accept the depreciation amount. One must try to estimate the age and efficiency of plant assets. It is also useful to compare depreciation, current and accumulated, with gross plant assets, and to make comparisons with similar companies. While an analyst cannot adjust earnings for depreciation with precision, an analyst doesn’t require precision. Comment on these statements.

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