Which of the Following Would Be Most Likely to Occur

question 54

Multiple Choice

Which of the following would be most likely to occur in the year after Congress, in an effort to increase tax revenue, passed legislation that forced companies to depreciate equipment over longer lives? Assume that sales, other operating costs, and tax rates are not affected, and assume that the same depreciation method is used for tax and stockholder reporting purposes.

• A)Companies' net operating profits after taxes (NOPAT) would decline.
• B)Companies' physical stocks of fixed assets would increase.
• C)Companies' net cash flows would increase.
• D)Companies' cash positions would decline.
• E)Companies' reported net incomes would decline.

Recognize and list the states that do not offer protection under specific hate crime laws, even after the enactment of the Matthew Shepard and James Byrd Jr. Hate Crimes Prevention Act.

Understand the concept and implications of peremptory challenges in jury selection.

Comprehend the significance and impacts of the Brown v. Board of Education ruling.

Identify and discuss disparities in drug sentencing and their social implications.

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Definitions:

Depreciation

The accounting process of allocating the cost of a tangible asset over its useful life, representing the decrease in value of the asset over time.

Section 1231

Refers to a tax provision in the United States that includes the tax treatment of gains and losses on the sale or exchange of real or depreciable property used in a trade or business and held for more than one year.

Ordinary Asset

An asset used in a business or trade which is subject to ordinary income tax rates rather than capital gains tax rates if sold or exchanged.

Trade or Business

Trade or Business refers to any activity carried out for the purpose of earning income or profit, involving dealings in goods or services.