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Reil [10]
3 years ago
11

Last year Tiemann Technologies reported $10,500 of sales, $6,250 of operating costs other than depreciation, and $1,300 of depre

ciation. The company had no amortization charges, it had $5,000 of bonds that carry a 6.5% interest rate, and its federal-plus-state income tax rate was 35%. This year's data are expected to remain unchanged except for one item, depreciation, which is expected to increase by $1,240. By how much will net after-tax income change as a result of the change in depreciation? The company uses the same depreciation calculations for tax and stockholder reporting purposes.
Business
1 answer:
SSSSS [86.1K]3 years ago
4 0

Answer:

See below.

Explanation:

According to the data, current income before tax is as follows,

Income before tax = (10,500-6250-1300-325) = $2,625

So last year the Income after tax would be = (2625 - (2625*0.35) = $1,706.25

This year the depreciation rises by 1,250 so the total change in net income is as follows,

Income before tax for this year = 2625-1240 = $1385

After tax income = 1385 - (1385*0.35) = $900.25

So the total change in net income over the two years

= 1706.25 - 900.25 = Fall by $806

Hope that helps.

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Vitek1552 [10]

Answer:

Negotiating a decision that the group is all happy with increases a team's cohesion and helps individual members examine their own motivations. Successful negotiation provides the team with faith in their ability to continue to co-operate with each other.

<h2>hope it helps you.</h2>
7 0
3 years ago
Trade-offs force society to make​ choices, particularly when answering the following three fundamental​ questions:
joja [24]

Answer:

The correct answer is D. One, what goods and services will be​ produced? Two, how will the goods and services be​ produced? Three, who will receive the goods and services​ produced?

Explanation:

There are two questions in particular that summarize the reason for the economy:

• How do elections determine what, how and for whom goods and services are produced?

• At what point are choices made in pursuit of personal interest promoting social interest?

What, how and for whom?

Goods and services are the objects that people value and produce to meet their needs.

What? It determines the goods and services that are produced as well as the amount that is produced from each good and service.

How? Goods and services are produced using what economists call production factors.

The factors of production are the resources that companies use to produce goods and services. These factors fall into four categories:

• Earth

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5 0
3 years ago
The current ratio includes at the of the following except :
Umnica [9.8K]

Answer: B i believe

Explanation:

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Which is better Canes or Zaxbys?
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Canes because they are just better
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Under the allowance method, bad debts expense is recorded with an adjustment at the end of each accounting period that debits th
Crank

Answer:

Dr. Allowance for Doubtful Accounts...1,200

Cr. Accounts Receivable....................................1,200

Explanation:

When a specific customer's account is identified as uncollectible, the journal entry to write off the account is:

A credit to Accounts Receivable (to remove the amount that will not be collected)

A debit to Allowance for Doubtful Accounts (to reduce the Allowance balance that was previously established)

Therefore the JOURNAL ENTRIES for the $1,200 uncollectible debt will be

Dr. Allowance for Doubtful Accounts...1,200

Cr. Accounts Receivable....................................1,200

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