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Ostrovityanka [42]
3 years ago
11

Your firm needs a machine which costs $240,000, and requires $39,000 in maintenance for each year of its 7 year life. After 3 ye

ars, this machine will be replaced. The machine falls into the MACRS 7-year class life category. Assume a tax rate of 40% and a discount rate of 12%. If this machine can be sold for $24,000 at the end of year 7, what is the after tax salvage value
Business
1 answer:
irinina [24]3 years ago
5 0

Answer:

The after tax salvage value would be of $18,681.6

Explanation:

In order to calculate the after tax salvage value we would have use and calculate the following formula:

After tax salvage value = selling price*(1-tax rate)+book value*tax rate

Book value = 8 year depreciation amount of 7 year MACR*purchase price

After tax salvage value = $24,000*(1-0.4)+$240,000*4.46/100*0.4

After tax salvage value =  $18,681.6

The after tax salvage value would be of $18,681.6

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MM Proposition I with corporate taxes states that:
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Answer:

d.) I and II

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3 years ago
On december 1, 2016, escobar consulting, which uses a calendar year as its fiscal year, signs a $4,000, 12%, four-month note pay
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April 1,2017
       Notes payable     $4,000
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3 years ago
Marketers often scan social media to learn more about what customers think. __________ is a technique in which data from a varie
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Answer:

sentiment analysis

Explanation:

Sentimental analysis is the mining of subjective information from a source material (usually social media), this is aimed at understanding the social sentiment the public has about a brand or service.

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3 years ago
Springer Products manufactures three different product lines, Model X, Model Y, and Model Z. Considerable market demand exists f
Zina [86]

Answer:

Model Y

Explanation:

Calculation for the which model is the most profitable to produce

Using this formula

Most profitable to produce=Selling price-Direct materials-Direct labor-Variable support costs

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If a certain household earns and spends $24,000 per year and, on average, holds a money balance of $6,000, then the velocity of money for this household is 4.

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2 years ago
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