(Appendix 8C)Under the simplifying assumptions made in the text, to calculate the amount of income tax expense associated with an investment project, first calculate the incremental net income earned during each year of the project and then multiply each year's incremental net income by the tax rate.

Question

Quizplus · Accepted Answer

The statement accurately describes the method to calculate income tax expense associated with an investment project under the simplifying assumptions made in the text. The incremental net income of each year is multiplied by the tax rate to obtain the amount of income tax expense for that year.

(Appendix 8C)Under the Simplifying Assumptions Made in the Text, to Calculate