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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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Cost of goods sold is given by:
icang [17]

Answer:

b. Net Purchases + beginning inventory - ending inventory.

Explanation:

The formula to compute the cost of goods sold is shown below:

Cost of good sold = Beginning inventory + net purchase - ending inventory

We simply added the net purchase and deduct the ending inventory to the beginning inventory so that the correct value can be determined

It records that cost which is directly related to the product that means it excludes the indirect cost

8 0
3 years ago
Samson, Inc. had the following balances and transactions during​ 2019: Beginning Merchandise Inventory 10 units at $ 94 March 10
lubasha [3.4K]

Answer:

The answer is attached;

Explanation:

Download xlsx
3 0
3 years ago
After a large hotel chain discovered that their computer systems had been hacked and customer credit card information had been a
Gnesinka [82]
The hotel's quick action in response to a serious situation was likely due to CYBER SECURITY BREACH. It is a threat not only to the customers but to the hotel business as well because with this breach, customers will find it hard to trust said hotel again. 

Because confidential data like credit card information were stolen, they need to immediately inform their customers to ensure that the customers will take the necessary steps in protecting themselves from having their identity stolen and from having their credit cards used in purchasing items they are not aware off. 
4 0
3 years ago
Why are certain crime losses, such as the theft of furs and jewelry, a more difficult exposure to insure than fire loss?
a_sh-v [17]

Answer:

It is very simple, if your house burns down, the evidence is there. All you need to do it look at a house that burnt down either completely or partially, but its easy to verify.

On the other hand, if you report that a necklace was stolen, it is really difficult to verify. Unless it is a unique jewel that is worth a ton of money, you could have simply given it away as a gift and then report it as stolen. The opportunities for insurance fraud are many when dealing with jewelry or other valuable objects that can be moved around easily.

The second question about different grants of authority refer to the organizational structure of a company. E.g. a salesperson in Best Buy is able to sell any item or items to regular customers. But sometimes a large order comes and the company must decide whether to discount the price or not, and then management kicks in and decides. The same happens to insurance agents. A company decides that some agents deal with policies that involve X amount of risk. If the level of risk is higher, they must work with other agents that are authorized to deal with high risk policies. It is basically a clearance level where employees are authorized up to this amount, and above that amount, other employees must be involved.

5 0
3 years ago
The 2017 Annual Report of Tootsie Roll Industries contains the following information. (in millions) December 31, 2017 December 3
a_sh-v [17]

Answer:

a. Asset turnover = Sales/Average total assets

Asset turnover= 515.7/[(930.9+920.1)/2]

Asset turnover = 515.7 / 925.5

Asset turnover = 0.5572123

Asset turnover = 0.557

b. Return on Assets = Net income/Average total assets

Return on Assets= 80.7/[(930.9+920.1)/2]

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Return on Assets= 8.72%

c. Profit Margin = Net income/Sales

Profit Margin = 80.7/515.7

Profit Margin = 15.65%

8 0
3 years ago
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