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<blockquote data-quote="Ricochet1a" data-source="post: 868006" data-attributes="member: 22880"><p>It all depends on what accounting method being utilized. If FedEx purchases an aircraft outright, then decrease equity, increase assets - the net income would remain unchanged. Depreciation would show as a recurring expense with the method chosen to depreciate the asset. Increasing debt load doesn't increase profitability, since there is a corresponding increase in company assets. You should know this, since you're running a business...</p></blockquote><p></p>
[QUOTE="Ricochet1a, post: 868006, member: 22880"] It all depends on what accounting method being utilized. If FedEx purchases an aircraft outright, then decrease equity, increase assets - the net income would remain unchanged. Depreciation would show as a recurring expense with the method chosen to depreciate the asset. Increasing debt load doesn't increase profitability, since there is a corresponding increase in company assets. You should know this, since you're running a business... [/QUOTE]
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