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DRAFT FOR ATTORNEY REVIEW — NOT FINAL

Dunn v. Enterprise Rent-A-Car Co., 170 S.W.3d 1 (2005)

Citation
Dunn v. Enterprise Rent-A-Car Co., 170 S.W.3d 1 (2005)
Parent Document
Dunn v. Enterprise Rent-A-Car Co., 170 S.W.3d 1 (2005)
Jurisdiction
Missouri (state)
Effective Date
2005-04-12

Other Sections in This Document (84)

Full Text

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Another issue of concern in preparation for the IPO was the rate of depreciation Enterprise used on its vehicles. Dunn testified Enterprise purchased its vehicles and depreciated them at the rate of 2% per month. He also testified, however, that this depreciation rate overstated the real depreciation of Enterprise’s rental vehicles and while this was considered acceptable for a privately held company, a depreciation rate of 2% for a publicly held company was a violation of GAAP. Dunn testified that if Enterprise were to go public with the IPO, GAAP would require that Enterprise lower its depreciation rate to no more than 1.5% per month.