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Homework answers / question archive / Which of the statements are false? (You can select more than one option) Upon the sale of equipment at the end of its useful life, tax liability will be incurred whenever the book value of the equipment exceeds the sales price
Which of the statements are false? (You can select more than one option)
Upon the sale of equipment at the end of its useful life, tax liability will be incurred whenever the book value of the equipment exceeds the sales price.
The total depreciation tax shield equals the product of depreciation and the tax rate.
In project analysis, allocations of overhead should be limited to only those that represent additional expense.
The method of financing a project affects the determination of its cash flows for capital budgeting purposes.
Option A IS FALSE
TAX LIABILITY ARISES WHERE BOOK VALUE IS LESS THAN THE SALE VALUE THEN TAX WILL BE PAID ON CAPTIA GAIN.
EX:BOOK VALUE 100
SALE VALUE 120 ,THEN CAPITAL GAIN=20
