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Dwayne saw the following information in an accounting report:
Motor Vehicle $40,000 Less Accumulated Depreciation Motor Vehicle 12,000
He believes that this means that if it was sold on that day, the vehicle should have achieved a price of about $28,000.Is Dwayne correct? Justify your answer by explaining what is meant by the term depreciation, the role and process of recognising depreciation in accounting reports, and by identifying the accounting concepts that provide the justification for recognising depreciation.
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