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Which would occur in the year the change

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Problem 1: A Start up firm is making an initial investment in new plant and equipment. assume that currently it's equipment must be depreciated on a straight line basis over 10 years but Congress is considering legislation that would require the firm to depreciate the equipment over 12 years. if the legislation becomes law which of the following would occur in the year following the change?

A. The firms taxable income would decrease
B. the firms net cash flow would increase
C. The firms reported net income would decrease
D. the firms operation income would increase
E. The firms tax payment would decrease

Reference no: EM132950042

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