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Alexeev081 [22]
2 years ago
10

A $63,000 machine with a 7-year class life was purchased 2 years ago. The machine will now be sold for $50,000 and replaced with

a new machine costing $75,000, with a 5-year class life. The new machine will not increase sales, but will decrease operating costs by $16,000 per year. Simplified straight line depreciation is employed for both machines, and the marginal corporate tax rate is 34 percent. What is the initial outlay for the project?.
Business
1 answer:
Lapatulllka [165]2 years ago
8 0

The initial outlay for the project after depreciation is loss of $26,700.

<h3>What is  depreciation?</h3>

Depreciation in accounting refers to two parts of the same concept: first, the real decline in fair value of an asset, such as the worth of factory equipment each year.

Depreciation is used to match the cost of a productive asset with a useful life of more than a year to the revenues received by employing the asset. The expense of an asset is frequently spread out throughout the years that it is used.

Section 32 of the Income Tax Act of 1961 contains the provision for authorising depreciation. Depreciation is a deduction allowed by the Income Tax Act for the reduction in the real worth of a physical or intangible asset used by a taxpayer.

To know more about  depreciation follow the link:

brainly.com/question/1203926

#SPJ4

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All of the following must be disclosed on municipal bond trade confirmation EXCEPT: A "In Whole" call dates B For revenue bonds,
Mashcka [7]

Answer:

The correct answer is D. For general obligation bonds, the source of income backing the issue.

Explanation:

There is no requirement to disclose the source of income that supports a general obligation issue because it must be a taxing power. The MSRB requires that the type of income that supports an income bond issue be disclosed, as well as the name of the corporate guarantor of the industrial income bonds. The dates of the calls "in their entirety" must also be disclosed in the customer confirmations, as they may affect the price of the issuance according to the rules of the MSRB (the MSRB requires that if a bond quoted based on performance is negotiated with a premium, and if it is enforceable "in its entirety" on pre-established dates and prices, then the dollar price must be calculated at the date of the call instead of the expiration date, since it is most likely to be called ).

5 0
3 years ago
John has two hours of free time this evening. He ranked his alternatives, first go to a concert, second go to a movie, third stu
sasho [114]

Answer:

a.Attending a movie

Explanation:

The opportunity cost is the cost or value or the item foregone. That is way opportunity cost is also known as alternative foregone.

It is also known as the real cost. When the wants are listed in a scale of preference in the order of priority, the limited resources is used to satisfy the first item on the list while the next unfulfilled want is the opportunity cost.

Therefore, for John, the opportunity cost is attending the movie, option a.

6 0
3 years ago
There are a number goods that over time, for a variety of reasons, transition from being a normal good to an inferior good or fr
boyakko [2]

Answer:

d. the camry becomes an inferior good because the good is now perceived as lower in quality than a lexus

Explanation:

There are a number goods that over time, for a variety of reasons, transition from being a normal good to an inferior good or from being an inferior good to a normal good. One such example of a good is the Toyota Camry. In the 1980s, more income for a household usually resulted in more Camrys being purchased. However, today more Toyota Camrys are purchased by households that have experienced a reduction in income.

How could this happen?

<u>This could only have happened because of a change in perception in households over time. </u>

It is stated in the Scenario that ''today more Toyota Camrys are purchased by households that have experienced a reduction in income.''

<u>That means Toyota Camry has become an inferior good that is purchased more when income falls.</u>

<u>Hence, the only reason the scenario would have occurred is that the camry becomes an inferior good because the good is now perceived as lower in quality</u> than a lexus

7 0
3 years ago
Ayala Architects incorporated as licensed architects on April 1, 2017. During the first month of the operation of the business,
Flauer [41]

Answer:

Ayala Architects

Journal Entries:

Apr. 1 Debit Cash $22,770

Credit Common Stock $22,770

To record common stock for cash.

Apr. 2 Debit Rent Expense $1,138

Credit Cash $1,138

To record rent expense paid for cash.

Apr. 3 Debit Supplies $1,644

Credit Cash $1,644

To record Supplies paid for cash.

Apr. 10 Debit Accounts Receivable $2,403

Credit Service Revenue $2,403

To record services rendered on account.

Apr. 11 Debit Cash $885

Credit Deferred Revenue $885

To record cash receipt for services not yet rendered.

Apr. 20 Debit Cash $3,542

Credit Service Revenue $3,542

To record cash received for services rendered.

Apr. 30 Debit Salaries $1,896

Credit Cash $1,896

To record payment of salary.

Apr. 30 Debit Accounts Payable $379

Credit Cash $379

To record payment on account.

Explanation:

a) Data and Analysis:

Apr. 1 Cash $22,770 Common Stock $22,770

Apr. 2 Rent Expense $1,138 Cash $1,138

Apr. 3 Supplies $1,644 Cash $1,644

Apr. 10 Accounts Receivable $2,403 Service Revenue $2,403

Apr. 11 Cash $885 Deferred Revenue $885

Apr. 20 Cash $3,542 Service Revenue $3,542

Apr. 30 Salaries $1,896 Cash $1,896

Apr. 30 Accounts Payable $379 Cash $379

6 0
3 years ago
Faith Busby and Jeremy Beatty started the B&amp;B partnership on January 1, Year 1. The business acquired $44,000 cash from Busb
Brums [2.3K]

If Faith Busby and Jeremy Beatty started the B&B partnership on January 1, Year. The income statement, capital statement, balance sheet, and statement of cash flows for B&B’s 2016 fiscal year are:

  • Income statement $23,600
  • Capital statement: Busby $51,440, Beatty $77,660
  • Balance sheet : Total Assets $129,100, Total Liabilities and Equity $129,100
  • Statement of cash flows for B&B’s $129,100

a. Income Statement

Income Statement for the year ended December 31, 2016  

Cash Revenues $42,000

Less: Cash Expenses ($18,400)

Net Income $23,600

($42,000-$18,400)

b. Capital statement

Capital Statement for the year ended December 31, 2016  

Busby Beatty

Beginning Capital Balance $44,000 $66,000

Less:- Withdrawal ($2,000) ($2,500)

Add:- Net Income $9,440 $14,160

[$44,000/($44,000+$66,000)×$23,600=$9,440]

[$66,000/($44,000+$66,000)×$23,600=$14,160]

Ending Capital Balance $51,440 $77,660

c. Balance Sheet

Balance Sheet As of December 31, 2016  

Assets  

Cash $129,100

($51,440+$77,660)

Total Assets  $129,100

Liabilities  

Equity  

Busby $51,440

Beatty $77,660  

Total Liabilities and Equity  $129,100

d. Cash Flow Statement

Cash Flow Statement  for the year ended December 31, 2016

Cash Flows from Operating Activities:  

Revenue from Operations      $42,000  

Operating Expenses           ($18,400)  

Net Cash flow from operating activities $23,600

($42,000-$18,400)

Net Cash flow from Investing activities  $0

Cash Flows from Financing Activities  

Proceeds from Partners $110,000

($44,000+$66,000)

Withdrawal by Partners ($4,500)

($2,000+$2,500)

Net cash flow from financing activities $105,500

($110,000-$4,500)

Net cash change   $129,100

($23,600+$0+$105,500)

Opening cash balance  $0

Ending Cash Balance  $129,100

Learn more here:

brainly.com/question/16751431

4 0
2 years ago
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