Assuming a tax rate of 35 depreciation expenses of 400000
Assuming a tax rate of 35%, depreciation expenses of $400,000 will
A. reduce income by $140,000.
B. reduce taxes by $400,000.
C. have no effect on income or taxes, since depreciation is not a cash expense.
D. reduce taxes by $140,000.
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1 the size effect is not consistent with of market efficiencynbspa semistrongb strongc weakd all of the abovee a and
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kads inc has spent 480000 on research to develop a new computer game the firm is planning to spend 280000 on a machine
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