Quiz Ch 03 – Nantell Corporation

Fundamentals of Financial Management, Concise

Brigham and Houston

09th Edition

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In light of the Nantell Corporation's recent purchase of an expensive equipment piece, where the initial plan was a 5-year straight-line depreciation, but Congress mandates a 7-year straight-line depreciation, what will be the consequence of this Congressional action assuming consistent depreciation methods for both tax and stockholder reporting?

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