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berry0331
Newbie
Joined: 04 Sep 2011
Online Status: Offline
Posts: 49
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| Posted: 24 Jan 2012 at 22:55 | IP Logged
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I sat for BEC last year but didn't pass the section. I remember seeing a
question that asked net present value and the depreciation information was
given but tax rate was not. Without the tax rate, the tax shield cannot be
computed. In the end my answer did not match any of the multiple answer
questions. It could be that my calculation for NPV was simply wrong by
mistake, but I was wondering if it was possible that I didn't take depreciation
into account just because the tax rate was not given?
Any advice is appreciated.
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CPA1979
Regular
Joined: 02 Aug 2010
Location: United States
Online Status: Offline
Posts: 210
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| Posted: 25 Jan 2012 at 20:33 | IP Logged
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I'm not trying to be difficult here, but please refrain from disclosing any
exam question because that is a violation of the disclosure you clicked "I
agree" to start the exam.
My only advice is look under the section in your test bank that covers that
topic.
__________________
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CPA in IL
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jl0329
Regular
Joined: 15 Feb 2011
Location: United States
Online Status: Offline
Posts: 186
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| Posted: 27 Jan 2012 at 15:55 | IP Logged
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If no tax rate was given, you shouldn't consider the
depreciation tax shield. There is no way you can calculate
that without the tax rate.
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Topic: One question from BEC exam
Topic Closed)
