In the previous year, a firm failed to record premium amortization of $40,000 and $30,000, respectively, on its bonds payable and held to maturity bond investments. these errors affect both income before tax and taxable income. the firm's tax rate is 30%. as a result of this error, net income was:
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What does the phrase limited liability mean in a corporate context?
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Aggart technologies is considering issuing new common stock and using the proceeds to reduce its outstanding debt. the stock issue would have no effect on total assets, the interest rate taggart pays, ebit, or the tax rate. which of the following is likely to occur if the company goes ahead with the stock issue? a. the roa will decline.b. taxable income will decline.c. the tax bill will increase.d. net income will decrease.e. the times-interest-earned ratio will decrease
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In the previous year, a firm failed to record premium amortization of $40,000 and $30,000, respectiv...
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