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Exercise
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Reference no. UVA-C-2227
Published by: Darden Business Publishing
Originally published in: 2005
Version: 25 September 2018
Revision date: 16-Oct-2023
Length: 6 pages
Data source: Published sources

Abstract

Lewis Driscoll faces a number of challenging property, plant, and equipment issues. If he purchases a new crane, what ancillary costs should be capitalized? What depreciation method should he choose? How should he account for disposal options for the old forklifts? Not only will his decisions affect current and future profitability, but they may also impact others' bonuses based on company performance.
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Abstract

Lewis Driscoll faces a number of challenging property, plant, and equipment issues. If he purchases a new crane, what ancillary costs should be capitalized? What depreciation method should he choose? How should he account for disposal options for the old forklifts? Not only will his decisions affect current and future profitability, but they may also impact others' bonuses based on company performance.

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