Use the Information Below to Answer the Following Questions

question 2

Multiple Choice

Use the information below to answer the following questions:
Pottery Ltd is trying to decide whether to use straight-line or reducing balance depreciation for its assets for both accounting and tax purposes. If it used straight-line, the depreciation expense for the first year would be $750 000, but if it used reducing balance at the rate allowable for taxation purposes, the expense would be $1 125 000. The company’s income tax rate is 40%.
-What would be the effect on depreciation expense if the reducing balance method were used rather than the straight-line method?

• A) There would be a $375 000 increase.
• B) There would be a $375 000 reduction.
• C) There would be a $225 000 increase.
• D) There would be a $225 000 reduction.

Recognize the role of effort justification in valuing personal experiences and decisions.

Identify the effects of role playing and induced compliance on changing personal attitudes.

Analyze the impact of post-decisional conflict on attitudes and behaviors.

Explore the strategies to alleviate cognitive dissonance by seeking consistent information.

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Definitions:

Depth Cues

Visual indicators that allow individuals to perceive the depth or distance of objects, including both binocular and monocular cues.

Pictorial

Relating to or conveyed through pictures or imagery.

Convergence

The coming together of different entities or ideas towards a common point or understanding, often used in the context of technology integration or eye movement.

Binocular

Relating to or involving both eyes to achieve a three-dimensional or depth perception.