The LeMond Corporation just purchased a new production line. Assume that the firm planned to depreciate the equipment over 5 years on a straight-line basis, but Congress then passed a provision that requires the company to depreciate the equipment on a straight-line basis over 7 years. Other things held constant, which of the following will occur as a result of this Congressional action? Assume that the company uses the same depreciation method for tax and stockholder reporting purposes. a. LeMond's tax liability for the year will be lower. b. LeMond's taxable income will be lower. c. LeMond's net fixed assets as shown on the balance sheet will be higher at the end of the year. d. LeMond's cash position will improve (increase). e. LeMond's reported net income after taxes for the year will be lower.
Answers (1)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “The LeMond Corporation just purchased a new production line. Assume that the firm planned to depreciate the equipment over 5 years on a ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
What accounted for the tremendous rise in the profits of the american financial industry, from less than 10 percent of total business profits in the 1950s to more than 40 percent in the 1990s?
Answers (1)
The market for gasoline has changed in a couple significant ways over the last few years: new technologies have decreased the costs associated with producing gasoline, and automobiles are becoming more fuel efficient.
Answers (1)
Mercury Corporation issued 3,500 shares of no-par common stock for $20 per share. Mercury also issued 3,200 shares of $50 par, 6 percent noncumulative preferred stock at $60 per share. Required a. Record these events in a horizontal statements model.
Answers (1)
According to the U. S. Public Health Service, which of the following would be considered a significant financial interest?
Answers (1)
Which of these formulas uses only relative cell references?
Answers (1)
New Questions in Business
There are plenty of products and services on the market that customers can choose from. however, customers select the business in which they purchase products based on the perceived value of the business and product.
Answers (1)
A married couple abandoned their principal residence in May. They had purchased the house five years ago for $350,000. The house had a current fair market value of $300,000.
Answers (1)
6 If you are a driver under 21 with a breath or blood alcohol level of. 05 or higher you will be required to:
Answers (1)
Why do you think companies felt that unions were "conspiracies that interfere with property rights"?
Answers (1)
When Ernesto needed to learn what his employees really think about his company's new pension plan, he approached Vonnie, a long-time secretary in the legal department with contacts throughout the organization.
Answers (1)