A Start-Up Firm Is Making an Initial Investment in New

question 2

Multiple Choice

A start-up firm is making an initial investment in new plant and equipment.Assume that currently its equipment must be depreciated on a straight-line basis over 10 years,but Congress is considering legislation that would require the firm to depreciate the equipment over 7 years.If the legislation becomes law,which of the following would occur in the year following the change?

• A)The firm's operating income (EBIT) would increase.
• B)The firm's taxable income would increase.
• C)The firm's cash flow would increase.
• D)The firm's tax payments would increase.
• E)The firm's reported net income would increase.

---

Definitions:

Parental Responsibility

The legal and ethical duty of parents to ensure the health, safety, and well-being of their children, including providing for their material, emotional, and educational needs.

Autonomous Fathers

Fathers who independently make decisions and care for their children without necessarily relying on a partner or other family members.

Family Commitment

The dedication or obligation one feels towards their family members, often manifesting as support, loyalty, and care.

Natural Mothering

A parenting approach focusing on biological and instinctive practices like breastfeeding and natural childbirth.