Target Net Income Is Computed by Multiplying Operating Income by One

question 106

True/False

Target net income is computed by multiplying operating income by one minus the entity's tax rate, or by multiplying operating income by the tax rate, and subtracting that amount from operating income.

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Definitions:

Dolly Legs

Trailer landing gear system; consists of gear-cranked, retractable legs reinforced by fixed gusset arms.

Lift Axle

A dead axle that can be raised and lowered using air pressure.

Hinged Trailer Door

a door mechanism on trailers that is attached by hinges, allowing it to swing open and closed for access or loading.

Curtain-Sided

Describes a trailer or truck with flexible sides (curtains) that can be opened for easy loading and unloading, while offering protection during transit.