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Question - Over the past five years, Kanto reported Operating Expenses in the amount of $220 million (2021); $180 million (2020); $200 million (2019); $160 million (2018); and $140 million (2017); each year, 10% of the Operating Expenses is R&D.
As an analyst, you believe the R&D expenses should be capitalized in order to better gauge Kanto's financial position. You assume Kanto's R&D activities benefit the company, on average, for 4 years. When you do the accounting adjustments, how much is the R&D amortization expenses in 2021?
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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