1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
BartSMP [9]
3 years ago
14

The Wet Corp. has an investment project that will reduce expenses by $25,000 per year for three years. The project's cost is $55

,000. If the asset is part of the three-year MACRS category (33% first year depreciation) and the company's tax rate is 34%, what is the cash flow from the project in year 1
Business
1 answer:
posledela3 years ago
3 0

Answer:

$22,671

Explanation:

The calculation of the cash flow for the year one is as follows:

Given amount                                    $25,000

Less: Depreciation                            -$18,150

Earning before income and taxes    $6,850

Less: Income tax expense                -$2,329     ($6,850 × 34%)

Earning after taxes                            $4,521

Add: Depreciation expense              $18,150

Annual cash flow                               $22,671

The depreciation expense is computed below:

= $55,000 × 33%

= $18,150

You might be interested in
Describe a product, and then give an example of a time when the demand for this product might be high and the demand for this pr
wariber [46]
Fitness service
around the time after new year cuz ppl start to getting fat cuz of earing too much during new year holidday l
aroung jan to mar that s when ppl start to be very fire up about getting in shape
6 0
3 years ago
Financial goals are helpful because they?
kvasek [131]
I think the answer to this is A.
Hope this helped.
5 0
4 years ago
three-fourths of the burden, and sellers bear one-fourth of the burden. b. one-half of the burden, and sellers bear one-half of
zubka84 [21]

The correct option is: For each unit of the good that is sold, buyers bear <u>one-half of the tax burden and sellers bear one-half of  the tax burden.</u>

<u>Explanation</u>:

Incidence of tax is a term referred in economics which deals with division of taxes. Tax incidence refers to division of tax among the buyer and seller for a product. The tax incidence is related to the price elasticity of supply and demand.

When a product is sold, the buyer of the product is charged with one-half of the tax burden and the seller of the product bears the other-half of the tax burden.

The incidence of tax can be observed in two ways:

i) Formal incidence

ii) Effective incidence

7 0
4 years ago
The marginal propensity to consume is 0.75 and the economy is operating at full-employment real GDP at $510 billion. If a $20 bi
KiRa [710]

Answer:

Long run real GDP will remain unchanged.

Explanation:

The increase in personal taxes (-$20 billion) would offset any increase in real GDP generated by the increase in private consumption ($20 billion). Nominal GDP can be affected and increase by $20 billion, but the effect would be given by an increase in general price level (inflation), not by an increase in real money.

6 0
3 years ago
Read 2 more answers
What are the functions of middle level management​
elena-14-01-66 [18.8K]

Answer:

  • Middle management is at the center of a hierarchical organization, subordinate to the senior management but above the lowest levels of operational staff.

  • Middle managers are accountable to top management for their department's function. They provide guidance to lower-level managers and inspire them to perform better.

<h2>Hope this helps you !! </h2>

8 0
2 years ago
Other questions:
  • Under normal costing, the actual manufacturing overhead costs incurred during the period are added to the work in process accoun
    13·1 answer
  • Finish this sentence... I believe car loans are
    5·1 answer
  • Ari is currently consuming 10 hot dogs and 8 hamburgers per week. The last hot dog she consumed yielded 20 utils while the last
    11·1 answer
  • Which of the following statements is incorrect with regard to product costs? A. Product costs flow from the balance sheet to the
    12·1 answer
  • The following transactions are for Kingbird Company.
    10·1 answer
  • Ann wants to be a manager who directs the work of others
    6·1 answer
  • QUESTION 9 of 10: You bid $111 per room per night for 40 guests for one night. The meeting planner says you've got the business
    10·2 answers
  • The cost of grading and spreading gravel on a curvy rural road is expected to be $300,000. The road will have to be maintained a
    14·1 answer
  • Green Corporation's assets are valued at $1,502,000 after payment of all corporate debts, except for $225,300 of taxes payable o
    14·1 answer
  • Cannibalization occurs when a producer offers a new product that takes sales away from its existing products
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!