statements for 2012, Cannon Inc. four a mistake in computing its straight-lin Depreciation Expense. After fixing the mistake, Cannon's Depreciation Exper was now $10,000 higher. Cannon is a company with a 35% Federal Statutor Rate.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Vo)
LTE
3 all 70% i 14:26
abc
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After completing its preliminary financial
statements for 2012, Cannon Inc. found
a mistake in computing its straight-line
Depreciation Expense. After fixing the
mistake, Cannon's Depreciation Expense
was now $10,000 higher. Cannon is a US
company with a 35% Federal Statutory Tax
Rate.
How did the $10,000 increase in Depreciation
Expense affect Net Income for 2012?
Net Income dropped by $6,500
Net Income dropped by $3,500
Net Income increased by $10,000
Net Income increased by $3,500
Net Income dropped by $10,000
В
I U
!!!
I!!
Transcribed Image Text:Vo) LTE 3 all 70% i 14:26 abc SAVE Text Pen Brush After completing its preliminary financial statements for 2012, Cannon Inc. found a mistake in computing its straight-line Depreciation Expense. After fixing the mistake, Cannon's Depreciation Expense was now $10,000 higher. Cannon is a US company with a 35% Federal Statutory Tax Rate. How did the $10,000 increase in Depreciation Expense affect Net Income for 2012? Net Income dropped by $6,500 Net Income dropped by $3,500 Net Income increased by $10,000 Net Income increased by $3,500 Net Income dropped by $10,000 В I U !!! I!!
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