For This Question,assume That Expectations of Productivity Are Slow to Adjust.An

question 45

Multiple Choice

For this question,assume that expectations of productivity are slow to adjust.An increase in productivity growth from 1% to 3% will cause

• A)an increase in the real wage of 1% and an increase in un.
• B)an increase in the real wage of 1% and a reduction in un.
• C)an increase in the real wage of 3% and an increase in un.
• D)an increase in the real wage of 3% and a reduction in un.

Understand the variability and applicability of different depreciation methods across various assets.

Know the definition and treatment of residual value in the context of depreciation.

Understand the accounting treatment for the disposal, sale, exchange, and discarding of fixed assets.

Recognize how different transactions affect the recording of gains or losses on assets.

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Definitions:

Residual Value

The estimated amount that an asset will be worth at the end of its useful life, often used in accounting for depreciation purposes.

Depreciation Expense

The allocated amount of the cost of a tangible or physical asset over its useful life, reflecting the asset’s consumption, wear and tear, or obsolescence.

Benefit The Company

Actions or strategies that enhance the performance, profitability, or competitive advantage of a company.

Cost of Equipment

The original value of equipment, including purchase price and any other expenses required to get the equipment ready for its intended use.