HOMEWORK$-2.$

Please read Chapter $*2$ and answer questions $1,-3,-8,-10,-11.$from Topics for Discussion at the end of the chapter and the following question: $$

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Elise and $*$ Joe $*$ purchased $*$ a $*$ new $*$ combine $*$ for $$56,000.$ Assume $*-7-$year $*$ useful. life and $*$ no salvage value. Calculate the depreciation for each year of the useful. life

a$.$ Straight$-$line $*$ method $*$

b$.)$Double declining$--$balance $*$ method$*$

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Explain the concept of "coordinated" financial statements. In what ways are the income statement, balance sheet, statement of owner equity, and statement of cash flows coordinated? $-$I

Explain the different methods of depreciation. What might influence the choice of depreciation $*$ method for $*$ a particular asset?"

Discuss the advantages of using fair market value asset valuation compared to cost$-$basis valuation $$

Distinguish between cash and accrual accounting in formulating an income statement $$

$11.$Discuss the rationale for separating the statement of cash flows into three components