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dolphi86 [110]
3 years ago
7

A new manufacturing machine is expected to cost $289,000, have an eight-year life, and a $33,000 salvage value. The machine will

yield an annual incremental after-tax income of $34,000 after deducting the straight-line depreciation. Compute the payback period for the purchase.
Business
1 answer:
ziro4ka [17]3 years ago
7 0

Answer:

4.38 years

Explanation:

Data provided in the question:

Cost of the machine = $289,000

Useful life = 8 years

Salvage value = $33,000

Incremental income after deducting depreciation = $34,000

Now,

Annual depreciation = [ Cost - Salvage value ] ÷ Useful life

= [ $289,000 - $33,000 ] ÷ 8

= $32,000

Thus,

Net Annual cash flow = Incremental income + Annual depreciation

= $34,000 + $32,000

= $66,000

Therefore,

Payback period = Cost ÷ ( Net Annual cash flow )

= $289,000 ÷ $66,000

= 4.38 years

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Amounts withheld from employee's earnings for employee income tax is considered a _____ by the employer until the government is
Komok [63]

Amounts withheld from employee's earnings for the employee income tax is considered a liability by the employer until the government is paid

What is liability?

Liability means the obligation that one party owes another, whose settlement requires the indebted party to transfer cash or equivalent value of other benefits commensurate to the liability to the other party.

In this case, the employees owe the government income taxes, whereby the employees have discharged the obligation by having the employers deduct them from their earnings.

The onus is now on the employers to make payments in respect of the income taxes withheld to the tax authority, prior to which the taxes are treated as the employer's liability.

Find out more about liability on:brainly.com/question/17090843

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Missing options:

(A) assets. (B) liabilities. (C) salary expense. (D) revenue.

7 0
1 year ago
Paris operates a talent agency as a sole proprietorship,and this year she incurred the following expenses in operating her talen
Juliette [100K]

Answer:

A) $450.

Explanation:

The computation of the total deductible amount of the expenses is as follows:

In the case of the deduction with respect to the meal cost and entertainment. Only the half of the expense would be deducted i.e. for the business meeting

As in the question the opera tickets is $900 so the half of $900 i.e. $450 would be allowed as a deduction

Therefore the correct option is A.

6 0
2 years ago
Is disease prevention by the government a pure public good or a private good? Explain
Lynna [10]
Public good are non-rivalry and non-excludable goods. People can benefit these goods without affecting and reducing its availability to others. Disease prevention by the government is purely public good since it is important to every individual and each person must not have any limitations in receiving these kind of prevention.
4 0
2 years ago
Major Corp. is considering the purchase of a new machine for $5,000 that will have an estimated useful life of five years and no
Mila [183]

Answer:

payback 2.5 years

Explanation:

the payback will be the point in time at which the project cash flow equal the invesmtent.

This method do not consider the time value of money so we don't have to adjust any period cashflow or outflow.

investment: 5,000

increase in cash-flow 2,000

Investment/cash flow = 5,000 / 2,000 = 2.5 years

The depreciation are not considered as this are not cash flow.

3 0
3 years ago
Victoria is a top executive working with the managers in the major divisions of a multinational corporation to develop their own
fredd [130]

Answer:

The answer is B

Explanation:

Top-down management or leadership which happen or occurs when the goals, objectives, tasks and projects are determined or evaluated among the firm or the company senior leaders, generally independently of their teams.

So, in this case, top executive working with the managers in order to develop or create their own goals. This approach is known as the top down leadership.And under this the tasks, projects are then communicated to the teams.

5 0
3 years ago
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