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viva [34]
3 years ago
7

The equipment necessary for a 4 year project will cost $3,300,000 and can be sold for $650,000 at the end of the project. The as

set is in the 5-year MACRS class. The depreciation percentage each year is 20.00%, 32.00%, 19.20%, 11.52%, 11.52%, and 5.76%, respectively. The company's tax rate is 40 percent. What is the aftertax salvage value of the equipment?
Business
1 answer:
Allisa [31]3 years ago
6 0

Answer: $618,096

Explanation:

Accumulated depreciation after 5 years = 20% + 32% + 19.2% + 11.52

= 82.72%

Value after 4 years = 3,300,000 * ( 1 - 82.72%)

= $570,240

Gain on sale = Salvage value - Net book value

= 650,000 - 570,240

= $79,760

Aftertax salvage value = 650,000 - (Gain on sale * tax)

= 650,000 - (79,760 * 40%)

= $618,096

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Career question #35 easy
Ganezh [65]
It is c because ruir
7 0
3 years ago
Wal-Mart was one of the most successful firms of the 1970s and 1980s. Much of Wal-Mart's success can be credited to its expansio
enyata [817]

Answer:

The correct answer is letter "D": Wal-Mart employed a preemptive strategy.

Explanation:

Game Theory is a branch of Economy that studies the decisions in which an individual could succeed if he or she takes into account the decisions of the rest of the participants involved in the event. Game Theory has also been applied for subjects such as <em>Mathematics, Managements, Psychology </em>or <em>even Biology. </em>

In the game theory, the Preemptive Strategy is implemented when individuals take a step before other participants in an attempt of having a favorable outcome of the situation. They lead the event using creativity. Thus, <em>Wal-Mart used the preemptive strategy by opening stores in small towns that supported only one discount store.</em>

8 0
3 years ago
The income statement for the month of June, 2018 of Sarasota Enterprises contains the following information:
BlackZzzverrR [31]

Answer:

b) credit to Rent Expense for $1530

Explanation:

Date Accounts and Explanation     Debit     Credit

         Income Summary                   $5,550

             Salaries & Wages Expense              $2,900

             Rent Expense                                    $1,530

             Advertising Expense                         $740

             Supplies Expense                              $270

             Insurance Expense                             $110

        (To Close the expense accounts)  

8 0
3 years ago
Preferred stock is a hybrid security because it has some characteristics typical of debt and others typical of equity. The follo
jonny [76]

Answer:

Dividends are fixed. ⇒ Consistent with Debt

Fixed dividends makes preferred shares consistent with debt because debt repayments are made in equal payments as well.

Usually has no specified maturity date ⇒ Consistent with Equity.

Equity has no set maturity date unlike debt and preferred stock has no maturity date either so is much like equity in this regard.

Cost of preferred stock.

Preferred stock is like a perpetuity. The cost of preferred stock is therefore:

= Constant dividend / Price of stock

= 13 / 130.45

= 9.97%

= 10%

8 0
3 years ago
A 15% increase in sales resulted in a 40% increase in net income for Company A and a 60% increase in net income for Company B. B
Ivahew [28]

company B has the greater operating leverage

What is operating leverage?

A cost-accounting method called operating leverage assesses how much a company or project can raise operating income by raising revenue. A company with significant operating leverage creates sales with a high gross margin and low variable costs.

The break-even point of a business is determined using operating leverage, which also aids in determining the right selling prices to cover all expenditures and make a profit.

Regardless of whether they sell any units of product, businesses with significant operational leverage must cover a bigger amount of fixed costs each month.

Low-operating-leverage businesses may have high variable costs that are directly related to sales, but they also have fewer monthly fixed expenses.

Learn more about operating leverage with the help of given link:-

brainly.com/question/6238482

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