Looking at this years study vidoes… trying to understand the example in Reading 22 regarding Equity/Prop/Aquisition methods.
In the example, MV of Fixed Assets > BV. Bone (Insturctor) then adds depreciation to the income statement for the delta. Why would you do this? Shouldn’t they be kept at market value… I thought assets were only written down if Book Value> MV, not the other way around?
Quick response appreciated. Also, good luck to everyone.