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NEW QUESTION: 1
Mellow Co. depreciated a $12,000 asset over five years, using the straight-line method with no salvage
value. At the beginning of the fifth year, it was determined that the asset will last another four years. What
amount should Mellow report as depreciation expense for year 5?
A. $900
B. $600
C. $2,400
D. $1,500
Answer: B
Explanation:
Choice "a" is correct. Over the first 4 years, the asset would be depreciated down to $2,400. Once it was
determined that the asset would last for another 4 years, $600 would be depreciated each year of that 4
year period. This change is a change in accounting estimate (the estimate being the life of the asset).
Changes is accounting estimate are accounted for in the current year and future years if the change
affects both. Choice "b" is incorrect. This answer is the annual difference between the depreciation
expense IF depreciation expense had been retroactively restated ($24,000 / 8 = $1,500) and the correct
depreciation expense. Retroactive restatement is not appropriate for changes in accounting estimate.
Choice "c" is incorrect. This answer is the depreciation expense IF depreciation had been retroactively
restated ($24,000 / 8 = $1,500). Retroactive restatement is not appropriate for changes in accounting
estimate. Choice "d" is incorrect. This answer is the undepreciated amount at the beginning of the fifth
year or the amount of the annual depreciation expense for each of the first 4 years. Either way, it certainly
is not going to be the depreciation expense for that year because the remaining cost will depreciated over
the remaining period.

NEW QUESTION: 2
Jack is an investment adviser representative employed by Giant Investments, a family of mutual funds.
Jack has recently read an article posted on the web that he thinks explains some consequences of some
tax law changes that are being considered extremely well, and he e-mails his existing retail customers
with a summary of the salient facts of the article. Given these facts:
A. a copy of the e-mail must be submitted to FINRA within 10 days of Jack's hitting the send button.
B. Jack has violated FINRA rules if he did not first have a principal of Giant approve his e-mail prior to
hitting the send button.
C. Both A and C are true statements regarding this situation.
D. Jack must submit a copy of the e-mail to a principal of the company, but he did not need to do so prior
to sending the e-mail.
Answer: D
Explanation:
When Jack e-mails some of his existing retail clients with a summary of the tax article, he
must submit a copy of the e-mail to a principal of the company, but he does not need to do so prior to
sending the e-mail. Since this was sent to Jack's existing retail customers, it falls under the category of
"correspondence," which does not need to be approved by a principal beforehand, but is subject to review
and supervision requirements.

NEW QUESTION: 3
You need to ensure that a child's information is available to their childcare worker.
What should you do with the child's information when a child turns seven? To answer, select the appropriate actions in the answer area.
NOTE: Each correct selection is worth one point.

Answer:
Explanation:

Explanation