Discussion
i. Disscuss the basic "accounting events" in the life of a depreciable plant asset. Which of these events directly affect the net income of the current period? Which directly affect cash flows (other than income tax payments)?
ii. Explain the relative priority of the claims of owners and of creditors to the assets of a business. Do all creditors have equal priority? Explain. If no, then give your thoughts as to why?
Homework
i. Should deprecation continue to be recorded on a building when ample evidence exists that the current market value is greater than original cost and that the rising trend of market values is continuing? Explain
ii. Explain why an employer's "total cost" of a payroll may exceed by a substantial amount the total wages and salaries earned by employees.
Format your homework according to the following formatting requirements:
i) The answer should be typed, using Times New Roman font (size 12), double spaced, with one-inch margins on all sides.
ii) The response also includes a cover page containing the title of the homework, the student's name, the course title, and the date. The cover page is not included in the required page length.
iii) Also include a reference page. The Citations and references must follow APA format. The reference page is not included in the required page length.