When constructing a cash-based income statement

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When constructing a cash-based income statement you notice that the amount of depreciation reported for the recent year exceeds the change in accumulated depreciation (current year-end value minus prior year-end value) under gross fixed assets by a substantial amount. For example, reported depreciation equals $300,000 while the change in accumulated depreciation equals just $220,000. Provide one explanation for why these two figures are not equal.

Reference no: EM131354069

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