1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
zlopas [31]
3 years ago
14

The LeMond Corporation just purchased a new production line. Assume that the firm planned to depreciate the equipment over 5 yea

rs on a straight-line basis, but Congress then passed a provision that requires the company to depreciate the equipment on a straight-line basis over 7 years. Other things held constant, which of the following will occur as a result of this Congressional action? Assume that the company uses the same depreciation method for tax and stockholder reporting purposes.a. LeMond's tax liability for the year will be lower.b. LeMond's taxable income will be lower.c. LeMond's net fixed assets as shown on the balance sheet will be higher at the end of the year.d. LeMond's cash position will improve (increase).e. LeMond's reported net income after taxes for the year will be lower.
Business
1 answer:
hammer [34]3 years ago
8 0

Answer:

c. LeMond's net fixed assets as shown on the balance sheet will be higher at the end of the year.

Explanation:

Provided information,

There is a purchase of new production line. On which the company plans to charge depreciation as per straight line method for 5 years. As per the recent amendment the company has to charge depreciation fr 7 years under straight line method.

Thus, depreciation per year will be decreased.

As depreciation is an expense which is going to decrease with increase in duration, therefore, income will increase and accordingly taxes will increase.

Also the net balance of fixed assets will be higher, as depreciation is less.

Therefore, correct statement is

c. LeMond's net fixed assets as shown on the balance sheet will be higher at the end of the year.

You might be interested in
"Jen operates Jen's Fruits & Vegetables, a small market stocked entirely with produce grown on her adjacent farm. Under what
GarryVolchara [31]

Answer:

The federal government can regulate Jen's activity citing the supreme court rule of the government ability to regulate any activity interstate or intrastate that affects interstate commerce.

In the line of this argument it means that a farmer growing and of goods affects interstate commerce.

The farmers best argument concerning the federal government regulating their activities due to interstate commerce is that his activities are purely local and although I don't believe any court will hear him out.

Explanation:

6 0
3 years ago
You own 100 shares of Troll Brothers' stock, which currently sells for $120 a share. The company is about to declare a 2-for-1 s
SSSSS [86.1K]

Answer:

You will have 200 shares of stock, and the stock will trade at or near $60 a share.

Explanation:

When a company declares a 2-for-1 stock split, its shares' value is cut by half, while the number of stocks of each share holder doubles.

If, before the split, the stock had a value of $120 per share, after the stock split it will sell for close to $60 a share.

If you previously had a position of 100 shares of Troll Brothers' stock, after the 2-for-1 split you will have 200 shares.

Therefore, you will have 200 shares of stock, and the stock will trade at or near $60 a share.

8 0
3 years ago
Describe how a job interview is affected by your clothing and body language in complete sentences.
Pachacha [2.7K]
If you dress casually and is all slumped down it can show that you dont care about the job but if you dress all formally and sitting up straight with your hands folded making eye contact they will know you really want the job and that your actually interested 
5 0
3 years ago
What is information gathered for a research called?​
mariarad [96]

Answer:

Data

Explanation:

8 0
3 years ago
Read 2 more answers
Can you become a marketing manager with a psychology degree
ozzi

Based to what I know you can, cause marketing manager is lower than psychology degree.

to be honest It depends in the person but the answer for this is YES and No. but if you want to make sure what's the answer wait for another person to answer the question what I just want to do is to answer your question and I hope that I help for this question.

6 0
3 years ago
Other questions:
  • he manufacturing overhead budget at Franklyn Corporation is based on budgeted direct labor-hours. The direct labor budget indica
    10·2 answers
  • In order to lower his monthly auto insurance bill, Henry has decided to change his existing policy by increasing the deductible
    10·2 answers
  • Loss leaders are poorly managed retail companies of outlets. true or false.
    13·2 answers
  • 1. Put the steps for creating a Trial Balance in the correct order.
    13·1 answer
  • -Provide public goods
    13·2 answers
  • Annapolis Company purchased a $1,000, 6%, 5-year bond at 97 and held it to maturity. The straight line method of amortization is
    7·1 answer
  • ________ would be hurt by unexpected inflation. a. A firm that purchased inputs with a two-year contract b. A worker whose wage
    10·1 answer
  • Endless Mountain Company manufactures a single product that is popular with outdoor recreation enthusiasts. The company sells it
    10·1 answer
  • Why have nonalcoholic drinks increased in popularity, and what difficulties do bar managers face when serving alcohol
    5·1 answer
  • The management of Elextric Corp., a computer manufacturing company, wants the employees in the organization to contribute to the
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!