Question: Wisdom Inc. tries to use conservative accounting methods. For example, it tends to make conservative estimates of the useful lives of capital assets (shorter lives

Wisdom Inc. tries to use conservative accounting methods. For example, it tends to make conservative estimates of the useful lives of capital assets (shorter lives rather than longer ones) and residual value (lower estimates of residual value).
a. What is the impact of these conservative accounting policies on income? Explain.
b. How could these conservative policies have unconservative effects when Wisdom Inc. disposes of capital assets? Explain.

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