Suppose Congress changed the tax laws so that Berndt's depreciation expenses doubled. No changes in operations occurred. What would happen to reported profit and to net cash flow

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Suppose Congress changed the tax laws so that Berndt's depreciation expenses doubled. No changes in operations occurred. What would happen to reported profit and to net cash flow taxable income would fall to zero, taxes would be zero, and net cash flow would rise.

An asset loses value over time as a result of use, damage, or obsolescence. Depreciation is the measurement for this decline. Description: A loss in an asset's value, or depreciation, can also be brought on by other reasons like bad market conditions, etc.

The base of an income tax system is referred to as taxable income. In other words, the amount of revenue that was subject to taxation. In general, it comprises all or a portion of the items of income and is lessened by costs and other deductions.

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