Pertinent information for two alternatives A and B is shown below. If i$=10\%/$year and the effective income tax rate is $35\%,$ answer the following true$/$false questions.

Alt. A Alt.B

Basis, $ $150,000225,,000$

Gross Income $($GI$),$ $ $100,000100,000$

Operating Expense $($OE$),$ $ $30,00010,000$

Salvage Value, $ $15,00022,500$

MARCS Depreciation Method ADS$-6$: Years Recovery Period GDS: $5-$Years Recovery Period

The TI $($taxable income$)$ of alternative A at the end of year $1$ is $$57,500.$

Group of answer choices

True

False