Check my 7 Exercise 13.18 (Static) METHODS AND APPLICATIONS ak In recent years major efforts have been made to standardize accounting practices in different countries, this is called harmonization. In an article in Accounting and Business Research, Emmanuel N. Emenyonu and Sidney J. Gray studied the extent to which accounting practices in France, Germany, and the UK, are harmonized. (a) Depreciation method is one of the accounting practices studied by Emenyonu and Gray. Three methods were consideredthe straight-line method (S), the declining balance method (D) and a combination of D & S (sometimes European firms start with the declining balance method and then switch over to the straight-line method when the figure derived from straight line exceeds that from declining balance). The data in the table (below) summarize the depreciation methods used by a sample of 78 French, German, and U.K. firms. + aces Depreciation Methods A. Straight line (S) B. Declining Bal (D) C. (DGS) Total companies France Germany UK Total 15 25 40 1 1 1 3 10 25 35 26 26 26 78 Chi-Square Test for Independence France Germany A. Straight line (s) 15 B. Declining Bal (D) 1 1 C. (D & S) 10 25 Total 26 26 50.894 chisquare 4 df 0.0000 UK 25 1 Total 40 3 35 78 26 D- value Click here for the Excel Data File Ilse these in the A B Depreciation methods used by a sample of 78 firms EF G H Depreciation Method A. Straight Line (S) B. Declining Bal (D) C. (D & S) Total Companies France 15 1 10 26 Country Germany 0 1 25 26 UK 25 1 0 26 Total 40 3 35 78 Chi-Square Test for Independence France Germany A. Straight line (S) 15 B. Declining Bal (D) 1 1 C. (D & S) 10 25 Total 26 26 50.894 chisquare 4 dt 0.0000 UK 25 1 Total 40 3 35 78 26 p- value Click here for the Excel Data File Use these data and the results of the chi-square analysis in the table (above) to test the hypothesis that depreciation method is independent of a firm's location (Country) at the .05 level of significance. (Round your answer to 3 decimal places.) x^2