Holter Inc.owns an investment that generated $120,000 cash revenue and required $26,500 cash expenses this year.Holter's marginal tax rate is 30%.Which of the following statements is false?
A) Holter's before-tax cash flow is $93,500.
B) If the revenue is taxable,but only $19,000 of the expenses are deductible,Holter's after-tax cash flow is $63,200.
C) If only $105,000 of the revenue is taxable,but all the expenses are deductible,Holter's after-tax cash flow is $69,950.
D) None of the above is false.
Correct Answer:
Verified
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