Answer:
Imagination Station is engaging in Vertical Integration.
Explanation:
Vertical Integration is a business strategy whereby a firm acquires businesses that provide the supplies it needs to make its products or that makes and sell its products.
In this context, Delux Technologies makes and sells only one product, a high-quality processor for mainframe computers and was approached by Imagination Station, a large computer manufacturer about purchasing their company.
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Answer:
The after tax salvage value of the asset is $165.000.
Explanation:
If the asset has a depreciation period of 5 years it means that still there is a depreciation´s remanent of $ 1.280.000, if the asset it's sold at $1.530.000 at the end of the project, then the salvage value before taxes it's $250.000 consequently the after tax salvage value of the asset it's $ 165.000.
When company's asset it's for sale if there is yet a remanent value of depreciation it's the cost of sale of the transaction, if the depreciation it's zero then the sale it's a all gain to the company.
Please see details below:
Value of the Asset : $6.400.000
Anual Depreciation: $.1.280.000
Value of Sale: $1.530.000
Cost of Sale : $1.280.000
Revenue : $250.000
Tax Rate: - $85.000
Salvage value: $165.000
