Mitch is in the 24% tax bracket. He may receive a different tax benefit for a $2,000 expenditure that is classified as
a deduction from AGI than he will receive for a $2,000 expenditure that is classified as a deduction for AGI.
True
RATIONALE: The value of the tax benefit to Mitch for the deduction from AGI may be less than
that for the deduction for AGI. The value of the deduction for AGI for a taxpayer in
the 24% bracket for a $2,000 expenditure is $480 ($2,000 × 24%). If Mitch takes the
standard deduction rather than itemizing deductions, then the $2,000 expenditure that
is classified as a deduction from AGI has no tax benefit.

Companies hd and ld are both profitable, and they have the same total assets (ta), total invested capital, sales (s), return on assets (roa), and profit margin (pm). both firms finance using only debt and common equity. however, company hd has the higher total debt to total capital ratio. which of the following statements is correct? a) company hd has a higher assets turnover than company ld. b) company hd has a higher return on equity than company ld. c) none of the other statements are correct because the information provided on the question is not enough. d) company hd has lower total assets turnover than company ld. e) company hd has a lower operating income (ebit) than company ld

Sauer food company has decided to buy a new computer system with an expected life of three years. the cost is $440,000. the company can borrow $440,000 for three years at 14 percent annual interest or for one year at 12 percent annual interest. assume interest is paid in full at the end of each year. a. how much would sauer food company save in interest over the three-year life of the computer system if the one-year loan is utilized and the loan is rolled over (reborrowed) each year at the same 12 percent rate? compare this to the 14 percent three-year loan.

Susan is a 5th grade teacher and loves getting up every day and going to work to teach her students. this is an example of a. extrinsic value b. interests c. intrinsic value d. external value