ANSWERS TO QUESTIONS
Note the answer 3.76% is the same as the rate of return on assets computed in (b) above. *EXERCISE 11-25 (20–25 minutes) 2007 2008 (b) Revenues $200,000 $200,000 Operating expenses (excluding depreciation) 130,000 130,000 Depreciation* 5,400 8,640 Taxable income $ 64,600 $ 61,360 *2007$27,000 X .20 = $5,400 ................
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