Barnhill, Inc uses straight-line depreciation for its equipment with an estimated useful life of 10 years and zero residual value. The CEO points out that the equipment will last much longer than 10 years, perhaps up to 20 years. What is the impact on earnings per share and net income of depreciating equipment over 20 years rather than 10 years?
a. Both earnings per share and net income will decrease.
b. Both earnings per share and net income will increase.
c. Earnings per share will decrease and net income will increase.
d. Earnings per share will increase and net income will decrease.
b
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What will be an ideal response?
A marketing manager has decided to "leapfrog" competition by moving into cutting-edge technologies. This indirect approach to attacking competition can be characterized as ________
A) flank attack B) encirclement attack C) bypass attack D) guerrilla warfare E) frontal attack
Johns Company operates in three different industries each of which is appropriately regarded as a reportable segment. Segment No. 1 contributed 60 percent of Johns Company's total sales. Sales for Segment No. 1 were $500,00 . and total variable costs were $400,000 . Total common costs for all segments were $320,000 . Johns allocates common costs based on the ratio of each segment's sales to the
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In the new manufacturing environment, the point of sale and shipment of a product ends the management accountant's responsibility with respect to the product
Indicate whether the statement is true or false