Laney Inc and Monroe Company Each Ordered a New Computer on on January

question 56

Essay

Laney Inc. and Monroe Company each ordered a new computer on January 1, 2017. The cost of each computer was $3,500. The economic life expectancy of each computer is three years with a $500 expected salvage value. During the current year Laney and Monroe experienced identical operating events with the only difference being that Laney used the straight-line depreciation method, while Monroe used the double-declining-balance depreciation method. Both became disenchanted with their computers during the year due to the introduction of a new generation of computers, and on December 31, 2017, each sold the computer for $800.
Indicate how the current year's net income statements for Laney and Monroe would differ.

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Definitions:

Low-context Cultures

Cultures in which communication is explicit, and meaning is expressed directly through words.

Direct Approaches

Tactics or methods that deal with problems or situations in a straightforward and clear manner.

Indirectness

The quality of not addressing an issue or matter in a straightforward or direct way, often used to soften communication or avoid confrontation.

Gestures

Physical movements of the body, especially the hands and arms, that convey ideas or emotions non-verbally.