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Problem 8-6: The Dodder Corporation The Dodder Corporation has annual cash revenues of 10000 and annual cash expenses of 4000. If it used straight line

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Problem 8-6: The Dodder Corporation The Dodder Corporation has annual cash revenues of 10000 and annual cash expenses of 4000. If it used straight line depreciation, the annual expense would be $7560. Using Double Declining Balance, the annual expense would be 16800 Part 1 Required: Assume that Dodder operates in a country with a 0% tax rate and complete the following table. From a Cash Flow perspective, which depreciation method would you prefer? Straight Line Double Declining Balance Cash Revenue Cash Expenses Depreciation Expense Income before ta Income Tax Net Income Operating Cash Flow Part 2 Required: Assume that Dodder operates in a country with a 40% tax rate and that accounting depreciation is fully tax deductible. Complete the following table. From a Cash Flow perspective, which depreciation method would you prefer? Straight Line Double Declining Balance Cash Revenue Cash Expenses Depreciation Expense Income before tax Income Tax Net Income Operating Cash Flow Upon completion, enter Operating Cash Flow below: Straight Line-096 Tax DDB-056 Tax Straight Line-40% Tax DDB-40% Tax

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