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asambeis [7]
2 years ago
14

Answer the folowing:1. Depreciation expenses directly affect a company’s taxable income. (True / False.)2. An increase in deprec

iation expense will ________ tax deducted from a company's earnings, thus leading to a ________ operating cash flow.
Business
1 answer:
Olegator [25]2 years ago
5 0

Depreciation expenses directly affect a company’s taxable income. (True / False.).2. An increase in depreciation expense will ________ tax deducted from a company's earnings, thus leading to a ________ operating cash flow is given in the following.

Explanation:

Depreciation expenses directly affect a company's taxable income is true.

  • By charting the decrease in the value of an asset or assets, depreciation reduces the amount of taxes a company or business pays via tax deductions. The smaller the depreciation expense, the higher the taxable income and the higher the tax payments owed.

Increase in depreciation expense

  • Increasing Depreciation will increase expenses, thereby decreasing Net Income. ... Balance Sheet: Net Fixed Assets (generally Plant, Property, and Equipment) is reduced by the amount of the Depreciation. This reduces Fixed Assets. It also reduces Net Income and therefore Retained Earnings (Shareholders' Equity) as well.
  • A depreciation increases the cost of imports so there will be an increase in cost-push inflation. A depreciation makes exports more competitive – without any effort. In the long-term, this may reduce incentives for firms to cut costs, and could lead to declining productivity and rising prices.
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When projecting future cash flows of an investment​ ________. A. the initial investment is a significant cash outflow that is tr
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At the date of the business combination, the book values of Spice’s assets and liabilities approximated fair value except for in
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$830,000.

Explanation:

Step one: determine or Calculate the total number of assets.

Total number of assets = Retained Earnings + inventory(spice) + cash + land fair value + inventory (pumpkin)

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Step two : Calculate or determine the total liabilities.

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Step three: determine the value for the total amount of goodwill.

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3 years ago
Religuard is a pharmaceutical company that has factories in Taiwan. Due to environmental regulations in the country becoming str
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B. social and political pressures

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