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Economy

Capital expenditures require years of painful amortization

HERE’S THE INTERESTING PART

Acquiring a massive piece of equipment is easy, but explaining it to the accountants is an absolute nightmare. Capital expenditures are major purchases that a company makes to expand its operations, but because of strict accounting rules, they cannot deduct the full cost immediately and must slowly bleed the expense over the asset's useful life.

Capital expenditures require years of painful amortization
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