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Which of the following statements are true? Select all that apply A plant investment is always paid and depreciated in the area where the investment is made. A plant investment is paid by the parent company. The simulation uses the declining balance method for depreciation.

Question

Which of the following statements are true?
Select all that apply
A plant investment is always paid and depreciated in the area where the investment is made.
A plant investment is paid by the parent company.
The simulation uses the declining balance method for depreciation.

Which of the following statements are true? Select all that apply A plant investment is always paid and depreciated in the area where the investment is made. A plant investment is paid by the parent company. The simulation uses the declining balance method for depreciation.

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MerylElite · Tutor for 8 years

Answer

The correct options are:<br />- "A plant investment is paid by the parent company."<br />- "The simulation uses the declining balance method for depreciation."

Explain

1. "A plant investment is always paid and depreciated in the area where the investment is made." - This statement is not necessarily true. Depreciation and payment can be managed by the parent company or another entity, depending on the company's accounting practices and structure.<br />2. "A plant investment is paid by the parent company." - This statement can be true if the parent company is responsible for financing the investment. However, it is not a universal rule as subsidiaries may also finance their own investments.<br />3. "The simulation uses the declining balance method for depreciation." - This statement is specific to the context of the simulation mentioned. If the simulation explicitly states that it uses the declining balance method, then this statement would be true.
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