Which of the following statements is FALSE?
A)We begin the capital budgeting process by determining the incremental earnings of a project.
B)The marginal corporate tax rate is the tax rate the firm will pay on an incremental dollar of pre-tax income.
C)Investments in plant,property,and equipment are directly listed as expense when calculating earnings.
D)The opportunity cost of using a resource is the value it could have provided in its best alternative use.

Question

Quizplus · Accepted Answer

Investments in plant, property, and equipment are not directly listed as expense when calculating earnings. Instead, they are capitalized and then depreciated over their useful lives. This depreciation expense is then recognized on the income statement as an expense.

Which of the Following Statements Is FALSE