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Anton [14]
3 years ago
5

Assume that a company currently depreciates its fixed assets over 7 years. Which of the following would occur if a tax law chang

e forced the company to depreciate its fixed assets over 10 years instead?
A. The company's tax payment would increase
B. The company's cash position would increase
C. The company's net income would increase.
D. Statements a and b are correct
E. Statements b and c are correct.
Business
1 answer:
KATRIN_1 [288]3 years ago
6 0

Answer: E. Statements b and c are correct.

Explanation:

Should the company begin to depreciate over a 10 year period as opposed to 7, that would mean that the depreciation expense per year will reduce as it is now spread over a longer period. Because Depreciation reduces the Net Income and therefore reduces the taxes on the Net Income, reducing depreciation means that there is more Net Income. This will mean that the company can be taxed more.

Also, as just mentioned, spreading Depreciation over a longer period will reduce the depreciation expense. This would translate to a lower reduction in the Net Income so the Net Income will increase by this change.

For example, if a $70,000 asset was to be depreciated to $0 over 7 years, those payments would be $10,000 each using the Straight line method. This would reduce Net Income by $10,000 every year. If the period was changed to 10 years, the amount drops to $7,000 per year which would mean only $7,000 to remove from the Net Income meaning there'll be more Net Income and hence, more taxes.

If you need any clarification do react or comment.

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The ____ the percentage of an MNC's business conducted by its foreign subsidiaries, the ____ the percentage of a given financial
Xelga [282]

Answer:

greater; greater

Explanation:

The greater the percentage of an MNC's business conducted by its foreign subsidiaries, the greater the percentage of a given financial statement item that is susceptible to translation exposure.

3 0
3 years ago
Sirah runs a housecleaning service. She wants her employees to be highly efficient, cleaning a certain number of houses each day
romanna [79]

Answer:

transactional

Explanation:

Transactional leadership includes day-to-day performance and monitoring with respect to the focus on the organization related to the supervision and compliance of rules and regulations via rewards and retribution.

Since in the given situation it is mentioned that they have to clean the houses each day and perform the work accordingly so it would be transactional leadership style

4 0
3 years ago
Ed is taking off from work for four hours this afternoon and going to a baseball game. The ticket to the game costs $25 and it c
statuscvo [17]

Answer: $100

Explanation:

Opportunity cost is the benefit that we forgo when another option is chosen thereby leaving out something else. Based on the information given, Ed's opportunity cost of going to the ball will be calculated as the addition of the income that's lost when he takes some time off from his work and the expenses that he incurs on the base ball game. This will be:

= ( 4 × $15) + $25 + $15

= $60 + $40

= $100

The opportunity cost is $100.

8 0
3 years ago
A study reported that a 10% increase in the price of cigarettes would reduce consumption by 4% in the short-run and by 7.5% in t
Alja [10]

Answer:

Price elasticity of demand shows how much a 1% change in the price of a good or services changes the quantity demanded.

In the short run, a 10% increase in price decreases quantity demanded by 4%

PED short run = % change in price / % change in quantity = 4% / 10% = 0.4

PED long run = % change in price / % change in quantity = 7.5% / 10% = 0.75

Both PEDs are inelastic since they are less than 1, which means that an increase in price will result in a proportionally smaller decrease in the quantity demanded. But the PED in the long run is less inelastic, which means that an increase in price will decrease the quantity demanded more in the long than in the short run.

This happens because smokes consider that cigarettes are a basic necessity, so they are willing to purchase them even if the price increases. But as time passes (long run), more smokers will consider that it is not worth paying that much for cigarettes and will probably quit smoking or at least reduce the number of cigarettes they smoke per day.

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3 years ago
What hygiene or personal care considerations are particularly important in the occupation forwhich you are training or that you
gregori [183]

The hygiene or personal care considerations that are important in the occupation include washing of hands, cleaning one's body, etc.

<h3>What is personal hygiene?</h3>

It should be noted that personal hygiene simply means the cleaning of body, washing hands, etc to keep one clean and prevent diseases.

In this case, the hygiene or personal care considerations that are important in the occupation include washing of hands, cleaning one's body, etc.

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2 years ago
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