Q9.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.Alt. AAlt.B Basis, $150,000225,,000Gross Income (GI), $100,000100,000Operating Expense (OE), $30,00010,000Salvage Value, $15,00022,500MARCS Depreciation MethodADS-6: Years Recovery PeriodGDS: 5-Years Recovery PeriodThe TI (taxable income) of Alt. B at the end of year 1 is $45,000.Group of answer choicesTrueFalse

The "operating expenses" (OPEX) are the expenditures related to the regular operations required to…

Answered: Q9. Pertinent information for two…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Q9.

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.

Alt. A	Alt.B
Basis, $	150,000	225,,000
Gross Income (GI), $	100,000	100,000
Operating Expense (OE), $	30,000	10,000
Salvage Value, $	15,000	22,500
MARCS Depreciation Method	ADS-6: Years Recovery Period	GDS: 5-Years Recovery Period

The TI (taxable income) of Alt. B at the end of year 1 is $45,000.

Group of answer choices

True

False

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