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Elza [17]
4 years ago
7

Russell's is considering purchasing $697,400 of equipment for a four-year project. The equipment falls in the five-year MACRS cl

ass with annual percentages of .2, .32, .192, .1152, .1152, and .0576 for Years 1 to 6, respectively. At the end of the project the equipment can be sold for an estimated $135,000. The required return is 13.2 percent and the tax rate is 23 percent. What is the amount of the aftertax salvage value of the equipment assuming no bonus depreciation is taken?A. $136.666.67B. $118,804.30C. $140,071.25D. $143,001.29E. $131667.47
Business
1 answer:
Anton [14]4 years ago
5 0

Answer:

E. $131667.47

Explanation:

For computing the after-tax salvage value , we need to do the following calculations:

1. Determine the book value:

= (Original cost of equipment) - (original cost of equipment × depreciation percentage for four years)

= ($697,400) - ($697,400 × 82.72%)

= $697,400 - $576,889.28

= $120,510.72

2. Determine the profit or loss on sale of equipment:

Profit = Sale value - Book value

= $135,000 - $120,510.72

= $14,489.28

3. Determine the tax on profit on sale of equipment:

= Profit × tax rate

= $14,489.28  × 23%

= $3,332.53

4. Now finally calculation of the after-tax salvage value is shown below:

= Salvage value - profit tax

= $135,000 - $3,332.53

= $131667.47

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I believe in this case that ABC motors is the customer and the car was still being delivered to their office. Therefore the correct answer to this is:

The title of ABC motors would be “Void”

<span>This is considered right away as Void since there was no information or any knowledge on the part of ABC motors about the stolen car. </span>

7 0
3 years ago
The nation of Newbie is establishing its monetary system and is designing its currency. The first proposal is to issue the Newbi
aliya0001 [1]

Answer:

The answer is yes, it will function as a medium of exchange.

Explanation:

Money has three functions, store of value, unit of account and medium of exchange. Money that can be used as a medium of exchange is money that is accepted as such by both buyers and sellers, and that is comfortable, or convenient enough, to be carried and exchanged

In this example, the nation of Newbie will issue a currency that can be easily transported. While heavy stock cardboard is a little bit heavier than the paper in which most modern-day currencies are printed, the weight is still light, and does not impede easy transportation and exchange of the currency bills.

Besides, the new Newbie Nugget will be what is know was the legal tender of the nation. The legal tender is the currency that a specific country accepts to collect taxes. This gives more legitimacy to Newbie Nugget and makes it a classical example of a medium of exchange.

3 0
4 years ago
City A, City B, and City C are cooperating to build a community center catering to the three cities. Seats on the 10-member comm
muminat

Answer:

city A = 3 members in the committee

city B = members in the committee

city C = 4 members in the committee

Explanation:

City A: 18,000 people

City B: 21,000 people

<u>City C: 22,000 people</u>

total 61,000 people

A seat in the committee will be assigned for every 6,100 people

city A = 18,000 / 6,100 = 2.95 ⇒ city A will get 2 + 1 = 3 members in the committee

city B = 21,000 / 6,100 = 3.44 ⇒ city B will get 3 + 0 = 3 members in the committee

city C = 22,000 / 6,100 = 3.61 ⇒ city A will get 3 + 1 = 4 members in the committee

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8 1
4 years ago
We want to send all of our high-value customers a special VIP gift. We are defining high-value customers as those who have made
Setler79 [48]

Answer:

Customer ID HANAR

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Order ID 10981

Total Amount 15810.00

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Companies focus on Customer retention policies for high valued customers. The companies do not want to upset their high valued clients and lose a great part of their sales from these customers. In this question all the high valued customers are sent gifts by the company who has shop for $10,000 or more from the company this year. From the given list we have sorted the high valued customers based on this criteria.

4 0
3 years ago
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Answer:

a. reaction

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Therefore, the easiest and least expensive way to measure satisfaction and get timely feedback is to follow the reactions of the participants.

6 0
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