n 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? (Points : 1) It would have $2,000,000 less cash at the end of 2008. It would have $1,950,000 less cash at the end of 2008. it would have $150,000 less cash at the end of 2008.??? it would have an additional $50,000 in cash at the end of 2008.

Question

n 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? (Points : 1)         It would have $2,000,000 less cash at the end of 2008.         It would have $1,950,000 less cash at the end of 2008.         it would have $150,000 less cash at the end of 2008.???         it would have an additional $50,000 in cash at the end of 2008.

aravindg · Answer

Hi welcome to Openstudy !! :)