11. At the beginning of 2009, Glass Manufacturing purchased a new machine for its assembly line at a cost of $600,000. The machine has an estimated useful life of 10 years and esti- mated residual value of $50,000. Under the straight-line method, how much depreciation would Glass take in 2010 for financial reporting purposes! A. $55,000. B. $60,000 C. $65,000. 12. Using the same information as in Question 16, how much depreciation would Glass take in 2009 for financial reporting purposes under the double-declining balance method A. $60,000. B. $110,000 C. $120,000 13. Which combination of depreciation methods and useful lives is most conservative in the year a depreciable asset is acquired? A. Straight-line depreciation with a short useful life. B. Declining balance depreciation with a long useful life. C. Declining balance depreciation with a short useful life. 14. Under IFRS, a loss from the destruction of property in a fire would most likely be classi- fied as: A. continuing operations. B. discontinued operations. C. other comprehensive income. 15. A company chooses to change an accounting policy. This change requires that, if practical, the company restate its financial statements for: A. all prior periods. B. current and future periods. C. prior periods shown in a report. 16. For 2009, Flamingo Products had net income of $1,000,000. At 1 January 2009, there were 1,000,000 shares outstanding. On 1 July 2009, the company issued 100,000 new shares for $20 per share. The company paid $200,000 in dividends to common sharehold- ers. What is Flamingo's basic earnings per share for 2009 A. $0.80. B. $0.91. C. $0.95. 17. For its fiscal year-end, Calvan Water Corporation (CWC) reported net income of $12 million and a weighted average of 2,000,000 common shares outstanding. The compa- ny paid $800,000 in preferred dividends and had 100,000 options outstanding with an average exercise price of $20. CWC's market price over the year averaged $25 per share. CWC's diluted EPS is closest to: A. $5.33. B. $5.54. C. $5.94