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2 years ago

The earnings of an investor-owned corporation can be subject to double taxation.

1 answer:

5 0

This is true. One of the biggest disadvantages of corporations is the fact that they are subject to double taxation. Double taxation is when a company or person declares a taxable income, transaction or asset and then two or more jurisdictions then tax that income.

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Marshall Company purchases a machine for $840,000. The machine has an estimated residual value of $40,000. The company expects t

natka813 [3]

If the units-of-production method is used, the depreciation expense for this period is: $136,000

Explanation:

Given:

Cost of machine= $840,000

Estimated residual value= $40,000

No of units produced during current period= 680,000 units

Expected production by the machine= 4 million units

Unit of production method= cost of asset-salvage value/useful life in the form of units produced

Depreciation per unit= (cost - residual value)/estimated life in units

= (840,000-40,000)/4,000,000

Depreciation per unit= 0.2 per unit

To calculate depreciation for period,

Depreciation for period= depreciation per unit*actual units produced in this period

= .2*680,000

Depreciation for period= $136,000

3 0

2 years ago

Which contractual standard for product safety and liability says that buyers chose to make purchases and therefore every purchas

taurus [48]

The contractual standard for product safety and liability that says the buyer chose to make the purchases and knows the each purchase involves informed consent is often referred to as the standard of caveat emptor. This is simply a warning that lets the buyer know and understand the product is sold as is and is subject to all defects. Basically, another way of saying buyer be ware.

3 0

3 years ago

Ingram Electric Products is considering a project that has the following cash flow and WACC data. What is the project's MIRR? No

SpyIntel [72]

Answer:

the project's MIRR is 13.50 %.

Explanation:

MODIFIED INTERNAL RATE OF RETURN (MIRR)

-It is the rate that causes the Present Value of the Terminal Value (Future Cash flows at the end of the Project) to equal Present Value of Cash outflows.

-MIRR assumes a reinvestment rate at the end of the project

The First Step is to Calculate the Terminal Value at end of year 3.

Terminal Value (FV) = Sum of (PV x (1 + r) ^ 3 - n)

= $350 x (1.11) ^ 2 + $350 x (1.11) ^ 1 + $350 x (1.11) ^ 0

= $431.24 + $388.50 + $350.00

= $1,169.74

The Next Step is to Calculate the MIRR using a Financial Calculator :

(-$800) CFj

0 CFj

$1,169.74 CFj

Shift IRR/Yr 113.50 %

Therefore, the MIRR is 13.50 %

6 0

3 years ago

When president obama was elected, the u.s. economy was in trouble, and has slid into a recession. consumer spending was low and

scoundrel [369]

Answer: Keynesian Economic Theory

Explanation: The policy adopted by the President was to cut back taxes and increase government spending on road, bridges and schools. This policy of the government is called the expansionary fiscal policy which is used to combat an economy suffering from recession. The Keynesian theory also supports the argument that when an economy is suffering from recession, economic output is influenced by aggregate demand. Thus, the government and use its fiscal policy tools to bring the economy out of recession. It also supports that the Fed can also use its monetary policy to bring the economy out of recession. But since here taxes and government spending are uses, we can say that Obama was a proponent of Keynesian Economic theory.

6 0

2 years ago

You are offered a chance to buy an asset for $4,500 that is expected to produce cash flows of $750 at the end of Year 1, $1,000

zzz [600]

Answer:

a. 22.64%

Explanation:

At first we are going to need to compute the Internal rate of return(IRR) (in which the current value of inflows = the current value of outflows)

Let's let the IRR be x percent

Therefore $4,500 = $750 / (1.0x)

+ $1,000 / (1.0x) power 2 + $850 / (1.0x) power 3 

+ $6,250 / (1.0x) power 4

Thus, x = approximate return rate = 22.64 percent

6 0

3 years ago