Suppose SAMI company had an additional $4 million depreciation expense in 2023. If SAMI's tax rate on pretax income is 35%, what would be the impact of this expense on SAMF's net income?OA. Decrease by $26 millionOB. No changeOC. Decrease by $1.4 millionOD. Decrease by $4 millionCHED

Net income is the amount which is earned by the investor from the business. It excludes the expenses…

Answered: Suppose SAMI company had an additional…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Sa Min Gi Company reported the following data for the 2020: Net sales P9,500,000 Cost of goods sold 4,000,000 Distribution costs 1,000,000 Administrative expenses Interest expense 1,200,000 700,000 Gain from sale of land 500,000 800,000 Income tax expense Income from discontinued operations- net of tax Unrealized gain on equity investment at FV through OCI- net of tax Actuarial loss during the year fully recognized- net of tax Foreign translation adjustment- debit net of tax Revaluation surplus during the year-net of tax 600,000 1,300,000 300,000 100,000 2,500,000 How much is the total comprehensive income for the 2020? C. P6,300,000 A. P2,900,000 B. P3,800,000 D. P6,500,000
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Suppose SAMI company had an additional $4 million depreciation expense in 2023 I SAMI's tax rate on pretax income is 35%, what would be the impact of this expense on SAM's net income? OA Decrease by $2.6 million OB. No change OC. Decrease by $1.4 million OD. Decrease by $4 million