Got Homework?
Connect with other students for help. It's a free community.
Here's the question you clicked on:
 0 viewing
Suppose a firms tax rate is 35%.
a.What effect would a $10 million operating expense have on this year's earnings? What effect would it have on next years's earnings?
b. What effect would a $10 million capital expense have on this year's earnings if the capital is depreciated at a rate of $2 million per year for five year? What effect would it have on next years earnings?
 2 years ago
 2 years ago
Suppose a firms tax rate is 35%. a.What effect would a $10 million operating expense have on this year's earnings? What effect would it have on next years's earnings? b. What effect would a $10 million capital expense have on this year's earnings if the capital is depreciated at a rate of $2 million per year for five year? What effect would it have on next years earnings?
 2 years ago
 2 years ago

This Question is Closed

business1Best ResponseYou've already chosen the best response.0
a. reduce taxable operating earnings by $10m. no effect on next year's earnings. b. taxable earnings reduced by $2m for each of five years.
 2 years ago
See more questions >>>
Your question is ready. Sign up for free to start getting answers.
spraguer
(Moderator)
5
→ View Detailed Profile
is replying to Can someone tell me what button the professor is hitting...
23
 Teamwork 19 Teammate
 Problem Solving 19 Hero
 Engagement 19 Mad Hatter
 You have blocked this person.
 ✔ You're a fan Checking fan status...
Thanks for being so helpful in mathematics. If you are getting quality help, make sure you spread the word about OpenStudy.