Unformatted text preview: 184 35,000 5,000 total 35,000 b. the significant differences is the depreciation expense each year that changes. 9.5 A. No it is not violating the matching principle since company’s are allowed to use any number of methods. Depreciation is only an estimate B.to get lower income taxes which translates to increased cash avalibility. c. it would be more conservative in they way you are depreciating the asset at a higher value and trying to play it safe. 9.8 Estimated value of business as a whole : 2,800,000 Fair market value : 3,000,000 Estimated good will : 200,000 Investor should offer: 4,620,000 540000 X 3 + market value...
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- Spring '10