Question: chapter 3 the adjusting process assume that you are the...
Chapter 3: The Adjusting Process
Assume that you are the accountant for Computer Consultants. Prior to this year, Computer Consultants operated out of a leased office. However, the company purchased its own office building this year. The building is in an area where real estate values have been increasing an average of 6 percent per year.
The owner of Computer Consultants has asked why you recorded depreciation on the building if real estate values are appreciating. Write a response to the owner explaining why depreciation must be recorded on the company’s accounting records.
Please make sure that your initial post contains a properly cited reference. Please use APA style.