Your boss comes to you and asks you to defer recognizing certain expenses in this period by capitalizing the expenditures as a depreciable asset. It has been rumored that your branch of the company has been doing poorly and is on an internal list for possible closings. A closing of your branch would mean your boss, yourself and 20 others would lose their jobs. However, a good quarter could mean that another branch will be closed instead. You know the expenditure is not an asset.

Requied:

Define the agent(s) and principal(s) in this problem.