an equipment has a cost of $150,000. the replacement cost is $200,000. the equipment has 8 years useful life and no salvage value and the firm used straight line depreciation. the realized profit should recognized when use current cost accounting is:

a. $6,250

b. $43,750

c. $50,000

d. $25,000

one of the disadvantage of the accounting based bonus scheme is:

a. link the performance of management with the market share price

b. keep financial information objectivity

c. short-term oriented

d. links the management performance with the cost of capital