August 19, 2013
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Chapter 8 – Depreciation
Sample Responses to Discussion Questions
1) What impact does depreciation have on capital investment decision making at Schneider?
2) What will be the impact of these capital investment decisions on after-tax income for Schneider and
its shareholders?
3) Although maintaining two sets of books is legal, what concerns, if any, do you have about this
practice?
Sample Response: One obvious concern is that this seems like “twice as much work” keeping two
sets of books. Is it truly necessary? Another concern would be keeping the books in synch. At some
4) In the previous chapter on replacement analysis, we introduced J. B. Hunt Transport Services Inc.
(JBHT), another transportation and logistics company. What differences do you see between JBHT
and Schneider with respect to depreciation of their significant volume of assets? Recall that JBHT is
a public company based in North America.