Why is the book value of equipment irrelevant when considering the replacement of equipment?
Book value of the equipment is irrelevant in the decision because it is based on sunk historical costs that cannot be changed.
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When plant assets are reported, the current period's depreciation expense is subtracted from the original cost on the balance sheet
a. True b. False Indicate whether the statement is true or false
Which of the following is not a permissible reason for a regular corporation to accumulate earnings at the entity level and avoid the imposition of the accumulated earnings tax?
A. To construct a new plant facility in connection with expanding the corporation's business into a new geographic region B. To fund the development of a new product line C. To accumulate a fund of cash with which to pay off long-term debt due in twenty years D. To invest in the stock of an unrelated company to take advantage of the dividends received deduction
In a disaster relief supply chain, preparation should precede the disaster, which in turn precedes the response
Indicate whether the statement is true or false
According to the bird-in-the-hand dividend theory, investors value a dollar of expected capital
gain more highly than a dollar of expected dividends because capital gains are more unpredictable than dividends. Indicate whether the statement is true or false