There are two main reasons why we need to deal with depreciation. Which of the below is one of these reasons?
A) The gain but not the loss when a capital asset is disposed
B) The loss but not the gain when a capital asset is disposed
C) The tax flow implications from the OCF
D) The tax rate implications from the OCF
Answer: C
Explanation: C) There are two main reasons why we need to deal with depreciation. They are the tax flow implications from the OCF and the gain or loss at disposal of a capital asset.
You might also like to view...
The Isberg Company just paid a dividend of $0.75 per share, and that dividend is expected to grow at a constant rate of 5.50% per year in the future. The company's beta is 1.15, the market risk premium is 5.00%, and the risk-free rate is 4.00%. What is the fair value of the company's stock?
A) $18.62 B) $19.08 C) $19.56 D) $20.05
Which of the following with respect to partnership is TRUE?
A) Partnership is a separate legal entity. B) General partners have limited liability C) General partners have unlimited liability D) Partners are not agents for each other. E) Partners must make an equal financial contribution to the partnership.