Barnhill, Inc

question 172

Multiple Choice

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.

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Definitions:

Feature Detection

The process by which the brain identifies specific elements of sensory input, like edges or movements, to perceive objects or scenes.

Interposition

A visual cue in perceiving depth, where one object partially blocks another, leading the observer to perceive the blocking object as closer.

Interposition

A visual cue in which one object partially covers another, indicating that the former is closer to the viewer.

Depth Perception

The ability to perceive the distance of an object or the spatial relationship between objects, allowing us to move through the world safely and efficiently.