On january 1, 2012, albert invested $1,000 at 6 percent interest per year for three years. the cpi (times 100) on january 1, 2012, stood at 100. on january 1, 2013, the cpi was 105; on january 1, 2014, it was 110; and on january 1, 2015, the day albert’s investment matured, the cpi was 118. find the real rate of interest earned by albert in each of the three years and his total real return over the three-year period. assume that interest earnings are reinvested each year and themselves earn interest. hint: calculate inflation and real interest for each year and then calculate it for the three years as a whole. instructions: enter your responses rounded to one decimal place. if you are entering any negative numbers be sure to include a negative sign in front of those numbers. year real rate of interest 2012 % 2013 % 2014 % total real rate of return: %.

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.