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Financial losses and tax savings

True of False

1) Capitol Cost Allowance and a Terminal loss result in tax savings if a firm has positive taxable income, however, a Recapture of Income and Capital Gains increases taxes payable

2) All else equal, a decrease in the corporate tax rate decreases the value of the deprecation tax shield

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True of False

1) Capitol Cost Allowance and a Terminal loss result in tax ...

$2.19