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miltonboy87
Group Title
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?
 3 years ago
 3 years ago
miltonboy87 Group Title
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?
 3 years ago
 3 years ago

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business1 Group TitleBest 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.
 3 years ago
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