Chapter 9-68 1. I think it would not be appropriate to make the changes. Each of the changes will make the net income lower, and with trying to get a 12% raise you do not want to see a lower net income and then increase your wages. You would want a higher net income so you would have more cash to spread around. As long as nothing is fraudulent in the financial statements and the information is in the bounds of reason. 2. If the above changes are made then the disclosure I think should be required is the reasons for the raise amount and how they decided and the method that was decided. The change in method, life, and salvage value.
Chapter 9-72 Whenever estimates are used in accounting, it is possible they will change as time moves forward. Changing the estimate of the useful life of an asset will affect on depreciation calculation and it will calculate the depreciation according to the new useful time. Once you increase the life time of asset if some depreciation is posted then what ever the difference is there it will go into differenced accounts and post the differences.
Chapter 10-65 The effective-interest amortization method amortizes a varying amount each period. This method considers the time value of money. It is required by generally accepted accounting principles if it leads to results that differ from those obtained by the straight-line method. The straight line amortization method the company writes off the same amount of discount or premium each period the bonds are