(Appendix 13C) Prudencio Corporation Has Provided the Following Information Concerning

question 74

Multiple Choice

(Appendix 13C) Prudencio Corporation has provided the following information concerning a capital budgeting project:
The company uses straight-line depreciation on all equipment. Assume cash flows occur at the end of the year except for the initial investments. The company takes income taxes into account in its capital budgeting.
-The income tax expense in year 3 is:

• A) $21,000
• B) $12,000
• C) $9,000
• D) $33,000

---

Definitions:

Cocaine

A powerful stimulant drug derived from the leaves of the coca plant, often used recreationally and known for its abuse potential.

Alcohol

A psychoactive substance found in drinks such as beer, wine, and spirits, capable of altering mood and behavior.

Heroin

An opioid drug made from morphine, a natural substance taken from the seed pod of the various opium poppy plants, known for its addictive properties and illegal status in many countries.

Depressants

A category of drugs that reduce the functioning of the nervous system, often prescribed to relieve anxiety, induce sleep, or manage seizures.