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Question
When using PP&E as the forecast driver for depreciation, which of the following is most accurate?
a) From both an ideal and a practical standpoint, the driver should be net PP&E.
b) From both an ideal and a practical standpoint, the driver should be gross PP&E.
c) Ideally, the driver should be net PP&E, but practically the driver should be gross PP&E.
d) Ideally, the driver should be gross PP&E, but practically the driver should be net PP&E.
Answer
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