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exis [7]
3 years ago
14

Pierre's Hair Salon is considering opening a new location in French Lick, California. The cost of building a new salon is $284,0

00. A new salon will normally generate annual revenues of $60,490, with annual expenses (including depreciation) of $40,800. At the end of 15 years the salon will have a salvage value of $74,000 Calculate the annual rate of return on the project.
Business
1 answer:
Anastaziya [24]3 years ago
7 0

Answer:

11%

Explanation:

The computation of the annual rate of return is shown below:

Annual rate of return = Average annual income ÷average investment

where,

Average investment = (Initial investment + Salvage value) ÷ 2

= ($284,000 + $74,000) ÷ 2

= $179,000

And,

Average annual income is

= $60,490 - $40,800

= $19,690

So, the annual rate of return is

= $19,690 ÷ $179,000

= 11%

We simply applied the above formula

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A jeans company is pursuing a low cost strategy and has achieved a position in which it is the lowest cost manufacturer of denim
Darya [45]

Answer:

a

Explanation:

'Low-cost leadership' can be a competitive advantage as a company can sustain this advantage over a period of time and until it is producing economies of scale

7 0
3 years ago
Justin, age 52 and Jamie, age 49 live in California, are married, and file a joint return. Their combined salary for 2019 is $20
8090 [49]

Answer:

The correct answer is (e) None of the choices listed are correct.

Explanation:

Solution

Given that:

1. The Qualified dividend is the dividend taxed at capital gain tax rate and unqualified dividend taxed at individuals normal income tax rate. Therefore qualified dividend and non qualified dividend of $1500 &$500 included in gross taxable income.

2. Earned on US treasurers is exempt at state level but fully taxable at federal level. $1000 received taxable

3. State tax refund; don't report the state tax refund if didn't itemized deductions on federal tax return. Consider $1000 received as state tax refund required to be reported because of itemized deductions.

4. Section 125 of IRC specifies that cafeteria plans are exempt from calculation of gross income for federal taxation. Therefore $5000 cafeteria plan provided by employer is exempt.

5. During the year any state or local taxes paid and property taxes paid are deductible. Therefore $9000 and $3000 deductible subject to maximum $10000 of income tax and mortgage interest is $14000.

Now,

The Income is

The Salary= $200000

Add

The Qualified dividend= $1500

Non-qualified dividend =$500

Income from US treasurer $1000

State tax refund =$1000

Gross income$204000

The Less deductions.

Mortgage interest 14000

Income ans property tax is$10000

Tax able income= $ 180000

Therefore the taxable income is =$180000

8 0
3 years ago
Room ideas!!
galben [10]

Answer:

ok

Explanation:

okokokokokjdjfjfjf

7 0
3 years ago
If a manufacturer does not have to pay for its contribution to pollution, it will produce too much output from a social viewpoin
NISA [10]
The choices are: 
A. Too much output from a social viewpoint.
B. Inefficiently from a private viewpoint.
C. Unprofitably from a private viewpoint.
D. At a price that is too high from a social view.

I think the answer is, <span>A. Too much output from a social viewpoint. To be exempted from contribution means the manufacturer has made an innovation and management of waste that is recommendable for other industries. From the standpoint of those who have observed it has exceeded expectation. It could have made a 0 waste which is also profitable for both the community and the industry as well. </span>
7 0
3 years ago
In its current year income statement, Cere Co. reported income before income taxes of $300,000. Cere estimated that, because of
Andreas93 [3]

The amount that Cere should report as income tax expense is $84,000.

Income tax expense refers to the amount of taxes owed by a person to the taxing authority.

  • The Formula for Income tax expense is Taxable income * Effective tax rate.

<u>Given Information</u>

Taxable income = $280,000

Effective Tax rate = 30%

Income tax expense = $280,000  * 30%

Income tax expense = $84,000

Therefore, the amount that Cere should report as income tax expense is $84,000.

See similar solution here

<em>brainly.com/question/13003196</em>

5 0
2 years ago
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