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Natali5045456 [20]
3 years ago
6

Assume that Congress recently passed a provision that will enable Barton's Rare Books (BRB) to double its depreciation expense f

or the upcoming year but will have no effect on its sales revenue or tax rate. Prior to the new provision, BRB's net income after taxes was forecasted to be $4 million. Which of the following best describes the impact of the new provision on BRB's financial statements versus the statements without the provision? Assume that the company uses the same depreciation method for tax and stockholder reporting purposes.- The provision will reduce the company's net cash flow.- The provision will increase the company's net income.- Net fixed assets on the balance sheet will increase.- The provision will increase the company's tax payments.-Net fixed assets on the balance sheet will decrease.
Business
1 answer:
Lostsunrise [7]3 years ago
4 0

Answer:

Net fixed assets on the balance sheet will decrease.

Explanation:

If we assume that Congress recently passed a provision that will enable Barton's Rare Books (BRB) to double its depreciation expense for the upcoming year but will have no effect on its sales revenue or tax rate.

The conclusion that best describes the impact of the new provision on BRB's financial statements versus the statements without the provision is that the <u>Net fixed assets on the balance sheet will decrease.</u>

<u>Normally in the Balance Sheet, the values of Net Assets are arrived at by subtracting the accumulated amounts of depreciation from the cost of the assets</u>

<u>Therefore if the values of depreciation are doubled, then the resultant amount of Net Assets will be smaller because a bigger deduction has been made against the cost of acquisition.</u>

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Marc and Michelle are married and earned salaries this year of $71,600 and $14,850, respectively. In addition to their salaries,
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3 years ago
You are the newly assigned project manager to a major IT upgrade project in your global company. How will you determine the risk
kap26 [50]

Answer:

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The project manager would do well to plot a graph that would show the probability of a risky action happening or not. A risk tolerance line is now obtained from where the project manager can know if that risk is tolerable by organization standards. The extent of job security would also help in determining the amount of risk a manager can take. However, they are still expected to stay within the standards of the organization.

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3 years ago
A plant asset acquired on October 1, 2018, at a cost of $400,000 has an estimated useful life of 10 years. The salvage value is
melamori03 [73]

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Explanation:

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Using this method, the depreciation expense for the first two years is $36,000 x 2 years = $72,000. This amount is regarded as the accumulated depreciation at the end of Year 2 while the net book value would be $400,000 - $72,000 = $328,000.

3 0
3 years ago
Given the following information, compute the property tax rate for the community in percentage terms. Total budget expenditures:
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Answer:

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