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Why might a manager decide to write down an asset that is not included in the restructuring action?

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Answer:

In a restructuring it is possible that managers may use the opportunity to write down assets that do not even relate directly to the restructuring action. Why might a manager decide to write down an asset that is not included in the restructuring action? The write down relieves future periods of depreciation expense, which increases earnings.

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User Arman Malik
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