For a given investment with initial cost and annual revenues, the after-tax IRR is typically higher than the before tax IRR. O True O False Taxable income for capital gain of an asset that is being sold is calculated as O A. Cost basis - Sale price B. Sale price - Depreciation in the year of sale O C. Sale price - Book value OD. Cost basis - Book value If the federal income tax rate is 21%, the state income tax rate is 9%, and state income taxes are a deductible expence when filing federal taxes, then the combined effective income tax rate is O A. greater than 30% O B. less than 30% OC. equal to 30% For tax-purposes, a corporation may prefer the MACRS-ADS method of depreciation over MACRS-GDS if the corporation expects to lose money or generate very little income in the early years of operation O A. False OB. True If Company A uses equipment it leases from Company B, then the company (i.e., Company A) is allowed to claim depreciation deductions on the equipment for tax purposes for the years that they used the equipment. O True O False