Question: What is depreciation, how is it calculated and how does it relate to the matching principle of accounting? Are there any estimates in depreciation and

What is depreciation, how is it calculated and how does it relate to the matching principle of accounting? Are there any estimates in depreciation and what are they? Why is it better to use these estimates than to not depreciate at all? What would be the alternatives to depreciation and what kinds of problems do they present? Please think about where we report equipment and similar items on the financial statements.

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