All else the same, greater depreciation deduction allowed by the IRS results in:

a) lower tax amount; higher after-tax profit
b) higher tax amount; greater after-tax profit
c) lower after-tax profit; greater addition to cash
d) lower before-tax profit; higher after-tax profit
e) lower after-tax profit; less addition to cash

Answer: c) lower after-tax profit; greater addition to cash

Business

You might also like to view...

Those who embrace products relatively early in the product life cycle, are likely to be community oriented, and often are opinion leaders themselves are referred to as which of the following?

a. late majority b. laggards c. innovators d. early adopters

Business

Mission statements are at their best when they reflect a ________

A) market B) strength C) competency D) vision E) value

Business