Pertinent information for two alternatives A and B is shown below. If i=10% / year and the effective income tax rate is 35%, answer the following true/false questions. Basis, $ Gross Income (GI), $ Operating Expense (OE), $ Salvage Value, $ MARCS Recovery, Years True Alt. A False 150,000 100,000 30,000 15,000 5 Alt.B 225,,000 100,000 10,000 The CFAT at the end of year 4 for Alt. A is less than $40,000. 22,500 5

Pertinent information for two alternatives A and B is shown below. If i=10% / year and the effective income tax rate is 35%, answer the following true/false questions. Basis, $ Gross Income (GI), $ Operating Expense (OE), $ Salvage Value, $ MARCS Recovery, Years True Alt. A False 150,000 100,000 30,000 15,000 5 Alt.B 225,,000 100,000 10,000 The CFAT at the end of year 4 for Alt. A is less than $40,000. 22,500 5

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter6: Accounting For Financial Management

Section: Chapter Questions

Problem 3P

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Pertinent information for two alternatives A and B is shown below. If i=10% / year and the effective income tax rate is 35%, answer the following true/false questions. Alt. A Alt.B Basis, $ Gross Income (GI), $ Operating Expense (OE), $ Salvage Value, $ MARCS Depreciation Method O True 150,000 100,000 30,000 O False 225,,000 100,000 10,000 The depreciation charge at the end of year 7 for Alt. A is zero. 15,000 22,500 ADS-6: Years Recovery GDS: 5-Years Recovery Period Period
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