Unformatted text preview: of these assets’ actual life? Trade publications show an average depreciation period of 12 years. Required: 1. How would increasing the depreciation period affect American Movieplex’s income? Increasing the depreciation period will cause their expenses to be understated which intern will cause the net income to be overstated. 2. Does revising the estimate pose an ethical dilemma? It does pose an ethical dilemma in my opinion because it is just being done to make the figures look good. 3. Who would be affected if Person’s suggestion is followed? Any and everyone that is interested in the financial wellbeing of the company is affected. For example the owners, share holders, and the public....
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- Spring '11
- Depreciation, depreciation period, Sarah Keene