A country in which inflation is on the rise will have a currency that _____ compared to a country in which inflation is low.

Fill in the blank(s) with the appropriate word(s).

Answer: depreciates

Business

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Thomas Enterprises purchased a depreciable asset on January 1, 2008 at a cost of $100,000. The asset is expected to have a salvage value of $15,000 at the end of its five-year useful life. Balance of accumulated depreciation of this asset at the end of 2009 is

a. $27540 b. $21600 c. $34000 d. $17000 e. $90000

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In which of the following instances is the independence of the CPA most likely not considered to be impaired? The CPA has been retained as the auditor of a

a. Charitable organization in which the spouse of the CPA serves as treasurer b. Municipality in which the CPA owns $25,000 of the $2,500,000 indebtedness of the municipality c. Credit union of which the CPA is a member d. Company in which the CPA's participant-directed retirement plan owns a 10% interest

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