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The managing director of your company has always been unhappy at depreciating the company's properties because he argues that these properties are in fact appreciating in value.
Recently he heard of another company which has investment properties and does not depreciate those properties.
You are required to write a report to your managing director explaining:
(a) the consequence of not depreciating the company's existing properties;
(b) the meaning of investment properties;
(c) the accounting treatment of investment properties in published financial statements.
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What is the bond interest expense for year 1?
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Consolidated balance sheet.
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