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Please help I will rate question Assume the following: A form acquires an asset for $120.000 with a 5 year useful life and no salvage

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Assume the following: A form acquires an asset for $120.000 with a 5 year useful life and no salvage The asset will generate $50,000 of cash flow for all five years The tax rate is 20% The firm will depreciate the asset over four years on a straight-line (SL) basis for tax purposes and over five years on a SL basis for financial reporting purposes Suppose tax rates rise during year 2 to 40%. At the end of year 2, the firm's balance sheet will show a deferred tax asset of $4,000 liability of 54,800 liability of $2400 Assume the following: . Afirm acquires an asset for $120,000 with a 5 year useful life and no salvage The asset will generate $50,000 of cash flow for all five years . The tax rate is 20% . The firm will depreciate the asset over four years on a straight-line (SL) basis for tax purposes and cover five years on a St basis for financial reporting purposes. At the end of year 2. the firm's balance sheet will report a deferred tax ability of $1.200 liability of $2.400 asset of $2.400

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