Suppose that raphael, an economist from a research institute in texas, and susan, an economist from a public television program, are arguing over budget deficits. the following dialogue shows an excerpt from their debate: susan: most people recognize that the budget deficit has been rising considerably over the last century. we need to find the best course of action to remedy this situation. raphael: i believe that a cut in income tax rates would boost economic growth and raise tax revenue enough to reduce budget deficits. susan: i actually feel that raising the top income tax rate would reduce the budget deficit more effectively. the disagreement between these economists is most likely due to .a. differences in perception versus realityb. differences in valuesc. differences in scientific judgmentsdespite their differences, with which proposition are two economists chosen at random most likely to agree? a. rent ceilings reduce the quantity and quality of available housing. b. having a single income tax rate would improve economic performance. c. immigrants receive more in government benefits than they contribute in taxes.

For each of the following situations, indicate whether you agree or disagree with the financial reporting practice employed and state the basic assumption, component, or accounting principle that is applied (if you agree) or violated (if you disagree).wagner corporation adjusted the valuation of all assets and liabilities to reflect changes in the purchasing power of the dollar.spooner oil company changed its method of accounting for oil and gas exploration costs from successful efforts to full cost. no mention of the change was included in the financial statements. the change had a material effect on spooner's financial statements.cypress manufacturing company purchased machinery having a five-year life. the cost of the machinery is being expensed over the life of the machinery.rudeen corporation purchased equipment for $180,000 at a liquidation sale of a competitor. because the equipment was worth $230,000, rudeen valued the equipment in its subsequent balance sheet at $230,000.davis bicycle company received a large order for the sale of 1,000 bicycles at $100 each. the customer paid davis the entire amount of $100,000 on march 15. however, davis did not record any revenue until april 17, the date the bicycles were delivered to the customer.gigantic corporation purchased two small calculators at a cost of $32.00. the cost of the calculators was expensed even though they had a three-year estimated useful life.esquire company provides financial statements to external users every three years.