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True, False, Uncertain and Why? A farmer would want to try to minimize his taxes if...
True, False, Uncertain and Why? A farmer would want to try to minimize his taxes if he wants his equity to grow fast.
Solutions
Expert Solution
True.
By minimizing taxes, the amount of surplus in the hands of farmer increases.
So when the surplus remains in hands of farmer, it would help in increasing his equity.
Equity = Assets - liabilities.
Income = Revenue - expenses.
This income will be subjected to taxes and the amount remaining will be added to retained earnings, which is a part of equity.
jeff jeffy answered 2 years agoRelated Solutions
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