The asset's book value is $70,000 on June 1, Year 3. On that date, management determines that the asset's salvage value should b
e $5,000 rather than the original estimate of $10,000. Based on this information, the amount of depreciation expense the company should recognize during the last six months of Year 3 would be:____________ a) $8,125.00
b) $7,375.00
c) $4,062.50
d) $3,750.00
e) $7,812.50
Answer: It is less severe than a material weakness
Explanation:
A SIGNIFICANT DEFICIENCY is described as a deficiency or an amalgamation of deficiencies that are NOT as severe as a MATERIAL WEAKNESS ( which is quite serious and must be reported to the Audit Committee and be reflected in the financial statements) but still important enough for those people in charge of the company's financial records to take notice.
The marginal product of the fourth dog trainer at Danica's Dog Training Emporium must be greater than 18, because otherwise, a fifth dog trainer, whose marginal product is specified to be 18, would not have been hired.
This is because marginal product is subject to the property of diminishing marginal returns, which establishes that for each additonal unit of labor hired, the additional output produced is less. For example, the first dog trainer at Danica's had to have a marginal product a lot greater than 18, the second dog trainer a bit less, the third trainer a bit less, and so on.
Firms hire up to the point where marginal product of labor equals the marginal cost of hiring.
Limited Company - A limited company (LC) is a general form of incorporation that limits the amount of liability undertaken by the company's shareholders.
