Answer:
1. Compute the annual depreciation expense prior to the change in estimates.
annual depreciation = ($396,000 - $36,000) / 50 = $7,200 per year
2. Compute the annual depreciation expense after the change in estimates.
annual depreciation = ($324,000 - $30,000) / 20 = $14,700 per year
3. What will be the net effect of changing estimates on the balance sheet, net income, and cash flows for the year?
Any changes in an asset's useful life are reported prospectively, this means that they do not affect any past records, only future records are affected. In this case, the depreciation expense per year will increase form $7,200 to $14,700, so net income will be negatively affected by it. Cash flows will not be affected, since depreciation expense is a non-cash expense. P,P&E on the balance sheet will be affected because the net value of the building will decrease faster.
This is how <u>"selective distortion" </u>can influence the consumer decision making process.
Selective distortion is a term that alludes to the inclination of individuals to translate data in a way that will bolster what they as of now accept. This concept,along with particular consideration and specific maintenance, makes it difficult for advertisers to get their message across and make great item observation.
Selective distortion, the perceptual procedure which happens when individuals intuitively endeavor to make new data fit their old thoughts regarding something.
Answer:
Option B
Explanation:
If the demand curve is elastic that means a small change in price will lead to greater change in the quantity demanded
On the other hand if supply curve is very inelastic that means change in price will not have grater impact on the supply.
Therefore, the burden of increase tax will be borne by buyers not on the suppliers because suppliers are less affected in this case.
Answer:
4%
Explanation:
Simple interest is calculated using the formula
I = p x r x t
in this case, the interest I is the total amount-principal amount
I = $50,000- $46,875
=$3,125
$3,125 = 46,875 x r x 1 year 8 months
$3,125 =46,875 x r/100 x 1.67
3125=78,281.25 x r/100
$3125 x 100 = 78,281.25 x r
$312500= 78,281.25
r=312500/78,281.25
r=3.992
r=4%
The investor determines that a credit loss exists on the investment