Use the table for the question(s) below.
-Consider the above statement of cash flows. In 2012, AOS Industries had contemplated buying a new warehouse for $2 million, the cost of which would be depreciated over 10 years. If AOS Industries has a tax rate of 25%, what would be the impact for the amount of cash held by AOS at the end of 2012?
A) It would have $1,950,000 less cash at the end of 2012.
B) It would have $150,000 less cash at the end of 2012.
C) It would have an additional $50,000 in cash at the end of 2012.
D) It would have $2,000,000 less cash at the end of 2012.
Correct Answer:
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