Depreciation and Effect on Business

Thread 1 Depreciation   A plant manager suggests that the company’s accountants accelerate the rate of depreciation on machinery in one of the departments because improvements were rapidly making those machines obsolete. Discuss the accounting concept of depreciation and effect on business. What are your thoughts regarding the manager? Thread 2 Accounting Problems   Discuss the basic accounting problem that arises in handling each of the following situations:  1) assets purchased by issuance of common stock .  2) purchase of plant assets subject to a cash discount . 3) acquisition of plant assets by gift or donation . 4) assets purchased on a long-term credit basis . 5) a group of assets acquired for a lump sum . 6) an asset traded in or exchanged for another asset .