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Question - The CFO of Barrows Japan believes that employee training should be treated as investment because it increases sales not only in the current year but also in two subsequent years (after three years the effect of employee training wears off and has no effect on future sales). The following information is available:
2017
2016
2015
Income (based on GAAP)
300,000
250,000
200,000
Employee training
21,953
26,187
10,614
Required - Calculate 2017 adjusted income after capitalizing employee training costs.
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