Use the Information Below to Answer the Following Questions

question 46

Multiple Choice

Use the information below to answer the following questions:
Unstable Ltd has decided to change its depreciation method from straight-line to reducing balance, with the agreement of its auditors and taxation authorities. As a result, its annual depreciation expense increases by $200,000. The company’s income tax rate is 40%.
-What is the effect on ROE?

• A) It increases.
• B) It decreases.
• C) It's not effected.
• D) It cannot be determined from the information provided.

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Definitions:

Health Belief Model

A theoretical model that describes how individuals' beliefs about health conditions, their susceptibility to those conditions, and the perceived benefits of taking action influence their health-related behaviors.

Perceived Behavioral Control

An individual's beliefs about their capability to perform a particular behavior or action.

Subjective Norms

Individual perceptions of social pressure to perform or not perform a particular behavior, which can influence their actions.

Health Benefits

Positive effects on physical and/or mental well-being obtained through activities, foods, practices, or medical treatments.