Compare and Contrast Type 1 and Type 2 Reasoning

question 17

Essay

Compare and contrast Type 1 and Type 2 reasoning.Include in your discussion the benefits and drawbacks to each system,the instances in which each system would be used,and how changing the data format can lead to changes in use.

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Definitions:

Equity Method

An accounting technique used for recording investments in which the investor has significant influence over the investee, typically between 20% and 50% ownership.

Disposal of Equipment

The process of getting rid of fixed assets or equipment which is no longer useful or needed through sale, trade, or recycling.

Treasury Stock

Shares that were issued and subsequently repurchased by the issuing company, reducing the amount of outstanding stock on the open market.

Depreciation Expense

Depreciation Expense is the allocation of the cost of a tangible asset over its useful life, reflecting wear and tear, obsolescence, or other decline in value.