Question
Asked Jan 23, 2020
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Lenexa State Bank has followed the practice of capitalizing
certain marketing costs and amortizing these costs over
their expected life. In the current year, the bank determined
that the future benefits from these costs were doubtful. Consequently,
the bank adopted the policy of expensing these
costs as incurred. How should the bank report this accounting
change in the comparative financial statements?

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Expert Answer

Step 1

Accounting policy: Accounting policy is a set of rules, regulations, principles and pro...

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