Homework Exercise. ACCT 70311 . Question 1 (a). Calculate expected enterprise income, RNEA, and residual enterprise income for each year, 2014 – 2019 under GAAP accounting (where R&D expenditures are expensed against income). Question 1(a). Expected enterprise income. Question 1(a).
The CFO suggests that the focus should be on profits in 2022 (year options vest). What arguments might be made to justify using one depreciation method over the other?