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Author Question: IBC Corporation just purchased an expensive piece of equipment. Originally, the firm planned to ... (Read 82 times)

Scollins7

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on: Aug 7, 2023
IBC Corporation just purchased an expensive piece of equipment. Originally, the firm planned to depreciate the equipment over 11 years on a straight-line basis, but now wants to depreciate the equipment on a straight-line basis over 8 years. Other things held constant, what will occur as a result of this change? Assume for this question that the company uses the same depreciation method for tax and shareholder reporting purposes.

◦

IBC’s reported net income will increase.


◦

IBC’s cash flow will decrease.


◦

IBC’s net fixed assets as shown on the balance sheet will be lower at the end of the year.


◦

IBC’s income tax expense for the year will increase.

Financial Management: Theory and Practice ¦ Brigham, Ehrhardt, Gessaroli, Nason ¦ 4th Edition
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Marked as best answer by Scollins7 on Aug 7, 2023

Mynameisrandom

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Reply #1 on: Aug 7, 2023
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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Scollins7

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Reply 2 on: Aug 7, 2023
:D TYSM

meow1234

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Reply 3 on: Yesterday
Great answer, keep it coming :)

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