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Problem 1: After completing its preliminary financial statements for 2012, Cannon Inc. found a mistake in computing its straight-line Depreciation Expense. After fixing the mistake, Cannon's Depreciation Expense was now $10,000 higher. Cannon is a US company with a 35% Federal Statutory Tax Rate. How did the $10,000 increase in Depreciation Expense affect Net Income for 2012?
Option 1: Net Income dropped by $6,500
Option 2: Net Income dropped by $3,500
Option 3: Net Income increased by $10,000
Option 4: Net Income increased by $3,500
Option 5: Net Income dropped by $10,000
Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest. How much control does the Fed have over this longer real rate?
Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.
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