During the period, the business acquires an equipment costing P150,000 in cash. The owner of the business is questioning why you as his accountant, did not include the P150,000 equipment as one of

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During the period, the business acquires an equipment costing P150,000 in cash. The owner of the

business is questioning why you as his accountant, did not include the P150,000 equipment as one

of the items of operating expense in the income statement which resulted in a higher income tax of

the business?

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