Use the table for the question(s)below.
AOS Industries Statement of Cash Flows for 2008
-Consider the above statement of cash flows.In 2008,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 the 2008?
A)It would have $2,000,000 less cash at the end of 2008.
B)It would have $1,950,000 less cash at the end of 2008.
C)it would have $150,000 less cash at the end of 2008.
D)it would have an additional $50,000 in cash at the end of 2008.

Question

Use the table for the question(s)below.
AOS Industries Statement of Cash Flows for 2008 
-Consider the above statement of cash flows.In 2008,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 the 2008?
A)It would have $2,000,000 less cash at the end of 2008. 
B)It would have $1,950,000 less cash at the end of 2008. 
C)it would have $150,000 less cash at the end of 2008. 
D)it would have an additional $50,000 in cash at the end of 2008.

Quizplus · Accepted Answer

The Answer of Use the table for the question(s)below.
AOS Industries Statement of Cash Flows for 2008 
-Consider the above statement of cash flows.In 2008,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 the 2008?
A)It would have $2,000,000 less cash at the end of 2008. 
B)It would have $1,950,000 less cash at the end of 2008. 
C)it would have $150,000 less cash at the end of 2008. 
D)it would have an additional $50,000 in cash at the end of 2008.

Use the Table for the Question(s)below