Pertinent information for two alternatives A and B is shown below. If i=10% / year and the effective income tax rate is 35%, answer the following true/false questions.
Pertinent information for two alternatives A and B is shown below. If i=10% / year and the effective income tax rate is 35%, answer the following true/false questions.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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![Pertinent information for two alternatives A and B
is shown below. If i=10% / year and the effective
income tax rate is 35%, answer the following
true/false questions.
Basis, $
Gross Income
(GI), $
Operating
Expense (OE), $
Salvage Value, $
MARCS
Recovery, Years
True
Alt. A
O False
150,000
100,000
30,000
15,000
5
Alt.B
225,,000
100,000
10,000
The income tax amount at the end of year 3 of Alt.
A is greater than $15,000.
22,500
5](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F8f37abaf-2066-41c2-a0f5-8b99036cd88f%2F59b561ff-d9fc-4aab-8efc-9e24bb36cbcc%2F7bw5h3p_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Pertinent information for two alternatives A and B
is shown below. If i=10% / year and the effective
income tax rate is 35%, answer the following
true/false questions.
Basis, $
Gross Income
(GI), $
Operating
Expense (OE), $
Salvage Value, $
MARCS
Recovery, Years
True
Alt. A
O False
150,000
100,000
30,000
15,000
5
Alt.B
225,,000
100,000
10,000
The income tax amount at the end of year 3 of Alt.
A is greater than $15,000.
22,500
5
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