Example of one of the five communication corollaries

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1. A company records an entry to record $15,000 depreciation expense. Which of the following describes the entry?

A. Increase Property Plant and Equipment and increase Depreciation expense

B. Increase Depreciation expense and Increase Accumulated Depreciation- Property Plant and Equipment

C. Increase Property Plant and Equipment and Decrease Cash

D. Increase Depreciation expense and Decrease Cash

2. Assume a project has cash flows of -$251,300, $118,200, $137,300, and $114,300 for years 0 to 3, respectively. What is the profitability index given a required return of 12.5 percent?

Give a real-life example of one of the five communication corollaries (truthful communication; straw person fallacy; red herring strategy etc..).

250 words (please no plagiarism).

Reference no: EM132003640

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