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Cost of Goods Sold, $800

Cos of Goods Sold 800 Inventory 800

Cos of Goods Sold 800 Inventory 800

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Prepaid expenses decreases, an expense on the income statement increases and equity decreases

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Accelerated depreciation generates higher depreciation expense immediately, and therefore lowers tax payments in the early years of the assets life.

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The purchase cost of a special purpose machine that was used to make a product that is now obsolete

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