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

Pertinent information for two alternatives A and B is shown below. Ifi=10%/year and the effective income tax rate is 35%, answer the following true/false questions. Alt. A Alt.B Basis, $ 150,000 225,000 Gross Income (GI), $ 100,000 100,000 Operating Expense (OE), $ 30,000 10,000 Salvage Value, $ 15,000 22,500 MARCS Recovery, Years The Tl (taxable income) of Alt. B at the end of year 1 is $45,000. True False
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