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
You might also like to view...
Which of the following is TRUE of employees’ responses to witnessed ethical violations, as observed by the 2013 Ethics Resource Center (ERC) survey of 6,420 for- profit employees?
a. Most who reported the misconduct said they did so in hopes of hurting the perpetrator. b. Most who reported the misconduct experienced some kind of retaliation. c. Slightly less than half reported the misconduct. d. Most reported the misconduct.
In customer value-based pricing, price is considered along with all other marketing mix variables before the marketing program is set
Indicate whether the statement is true or false
According to the elaboration likelihood model of motivation, if we're interested and focused enough on a message, we take a "peripheral" route to a decision
Indicate whether the statement is true or false
If a company has assets of over $10 million but trades its stock over the counter, it is nevertheless required to comply with the 1934 Act if it has:
a. 500 or more shareholders. b. one class of stock with 500 or more shareholders. c. 500 or more shares of stock outstanding. d. 500 different investors.