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Vika [28.1K]
3 years ago
12

Purple Rose Corporation reported pretax book income of $500,000.

Business
1 answer:
Vikentia [17]3 years ago
5 0

Answer: $68,000

Explanation:

Let us assume that we are given a tax rate of 34% to use in computing the question. Therefore, Purple Rose's current income tax expense or benefit will be:

Pre-tax book income = $500,000

Less: Tax depreciation = $300,000

Net Income = $500,000 - $300,000 = $200,000

Current income tax expenses at 34% will then be:

= 34% × Net income

= 34/100 × $200,000

= $68,000

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Answer: 11.32%

Explanation:

Given the above variables, the total compound return can be calculated by;

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7 0
3 years ago
You are considering two alternative two-year investments: You can invest in a risky asset with a positive risk premium and retur
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Answer:

The correct answers from the options are options C and E

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3 years ago
A bank has a reserve requirement of 0.08. If it has demand deposits of $200,000 and is holding $4,000 in reserves: a. the bank i
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4 years ago
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4 years ago
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