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23. The Bellcamp Soup Company uses the straight-line depreciation for financial reporting purposes and accelerated depreciation for tax purposes. The companys tax rate is 35%.
23. The Bellcamp Soup Company uses the straight-line depreciation for financial reporting purposes and accelerated depreciation for tax purposes. The companys tax rate is 35%. The following information is extracted from the companys financial statements (amounts in $ millions). Year 10 Year 11 Depreciation Expense 175.9 184.1 Net Income 4.4 401.5 Net Plant, Property and Equipment 1,717.7 1,790.4 Total Assets 4,115.6 4,149.0 Retained Earnings 1,653.3 1,912.6 Deferred Tax Liability--Plant (from Notes) 184.6 175.6 As an analyst, you have decided to adjust the companys financial statements to reflect the conversion from straight-line to accelerated depreciation. Use the information provided to calculate the adjusted values for Year 11 of the following: a. Net Plant, Property and Equipment. b. Retained Earnings. c. Net Income
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