Answer:
Tax shield on depreciation = 600
Explanation:
given data
new piece of equipment = $11,000
salvage value = $1,000
marginal tax rate = 30%
average tax rate = 20%
time period = 5 year
to find out
net effect of annual depreciation on the free cash flow
solution
we know here cost of asset and Salvage value so we get depreciation cost
depreciation cost is = 11000 - 1000 = 10000
and
annual depreciation = 2000
so that Tax shield on depreciation will be
Tax shield on depreciation = 2000 × 30%
Tax shield on depreciation = 600
Answer:
A
Explanation: The Securities and Exchange Commission
The government helped the economy by preventing monopolies that way small independent buissness could survive.
Answer:
D
Explanation:
Marginal decisions involves considering the cost and benefit of taking a particular action. If the marginal benefit of taking a particular action exceeds the marginal cost, the activity should be undertaken
<span>This type of policy will change living benefits to taxable
as ordinary income, in contrast to non-taxable living benefits that are found
in life insurance.
A modified endowment contract</span> (MEC) refers to a
tax requirement of a life insurance policy where the policy has been financed
with more money than the money which is accepted under federal laws.
