Use the following information regarding a production asset to answer the next question(s).

-The annual after-tax operation costs would be
A) $1,000.
B) $1,200.
C) $1,500.
D) $2.000.

Question

Use the following information regarding a production asset to answer the next question(s).
 
-The annual after-tax operation costs would be
A) $1,000. 
B) $1,200. 
C) $1,500. 
D) $2.000.

Quizplus · Accepted Answer

The annual after-tax operation costs would be $1,200. This is because the annual before-tax operation costs are $1,500, and the tax rate is 20%. Therefore, the annual after-tax operation costs would be $1,500 - (0.20 * $1,500) = $1,200.

Use the Following Information Regarding a Production Asset to Answer