Pizza Company has $70,000 of depreciation expense and is subject to a 30% income tax rate. On an after-tax basis, depreciation results in a:
A) $21,000 inflow.
B) $21,000 outflow.
C) $49,000 inflow.
D) $49,000 outflow.
E) neither an inflow nor an outflow because depreciation is a noncash expense.
Correct Answer:
Verified
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