Maureen Smith is a single individual. She claims a standard deduction of $12,000. Her salary for the year was $134,750. What is her taxable income? O a $121,863 b.$105,698 Oc. $129,324 Od: $122,750 Oe. $120,620 QUESTION 7 Which of the following statements is CORRECT? O a. Actions that increase reported net income will always increase cash flow. Ob. One way to increase EVA is to achieve the same level of operating income but with more total invested capital obtained at a higher cost of capital. Oc. If a firm reports positive net income, its EVA must also be positive. Od. One way to increase EVA is to generate the same level of operating income but with less total invested capital. Oe. One drawback of EVA as a performance measure is that it mistakenly assumes that equity capital is free. QUESTION 8 Which of the following statements is CORRECT? O a. The balance sheet for a given year is designed to give us an idea of what happened to the firm during that year. Ob. The difference between the total assets reported on the balance sheet and the liabilities reported on this statement tells us the current market value of the stockholders' equity, assuming the statements are prepared in accordance with generally accepted accounting principles (GAAP). OC. The balance sheet for a given year tells us how much money the company earned during that year. Od. If a company's statements were prepared in accordance with generally accepted accounting principles (GAAP), the market value of the stock equals the book value of the stock as reported on the balance sheet. Oe. The assets section of a typical company's balance sheet begins with cash, then lists the assets in the order in which they will probably be converted to cash, with the longest-lived assets listed last