[APPENDIX] For 2015, Wasabi Company has accounting revenues of $6,000 . However, because of temporary differences between tax and accounting, $1,000 of this is not subject to tax. If expenses are $3,000 for both tax and accounting, and the tax rate is 40%, what is the amount of tax payable to the IRS?
a. $ 400
b. $ 800
c. $1,200
d. $1,600
b
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Answer the following statement true (T) or false (F)
In which adaptive leadership viewpoint do leaders provide a supportive environment for followers in which they help followers resolve internal conflicts and distinguish between reality and fantasy?
A. service orientation B. biological perspective C. psychotherapy perspective D. systems perspective
Adam Smith argued that the creation of wealth is a proper concern of government.
Answer the following statement true (T) or false (F)
A firm has a total market value of $10 million while its debt has a market value of $4 million. What is the after-tax weighted average cost of capital if the before-tax cost of debt is 10 percent, the cost of equity is 15 percent, and the tax rate is 21 percent? (Round to the nearest decimal place).
A. 10.4 percent B. 13.0 percent C. 8.8 percent D. 12.2 percent