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
Sloan [31]
3 years ago
8

See Table 2.5 LOADING... showing financial statement data and stock price data for Mydeco Corp. Suppose Mydeco had purchased add

itional equipment for $ 12.8 million at the end of 2016​, and this equipment was depreciated by $ 4.3 million per year in 2017​, 2018​, and 2019. Given​ Mydeco's tax rate of 35 %​, what impact would this additional purchase have had on​ Mydeco's net income in years 2016dash2019​? ​(Assume the equipment is paid for out of cash and that Mydeco earns no interest on its cash​ balances.)
Business
1 answer:
RoseWind [281]3 years ago
4 0

Answer:

The net impact on the income will be 2,795,000 each year

Explanation:

The purchase will generate the followng:

4.3 depreciation expense

and a tax shield, as this expense decrease the net income:

depreciation x tax-rate = tax-shield

4.3 x 35% = 1.505 millions

total impact on net income:

depreciation expense - tax shield

4.3 - 1.505 = 2.795‬ millions net impact

You might be interested in
How do you do income statement​
igomit [66]

To prepare an income statement, you will need to generate a trial balance report, calculate your revenue, determine the cost of goods sold, calculate the gross margin, include operating expenses, calculate your income, include income taxes, calculate net income and lastly finalize your income statement with business details and the reporting period.

If you can't find the time to make one from scratch, there are templates that can be used to help.

gross margin :  the amount of money a company retains after incurring the direct costs associated with producing the goods it sells and the services it provides.

net income : net earnings, is calculated as sales minus cost of goods sold, selling, general and administrative expenses, operating expenses, depreciation, interest, taxes, and other expenses.

3 0
2 years ago
Select examples of public goods provided to everyone by the government
bogdanovich [222]
A) protecting the country and D) public schools im sure this is the answer
3 0
3 years ago
Read 2 more answers
Candlewood LLC started business on September 1, and it adopted a calendar tax year. During the year, Candlewood incurred $6,500
SpyIntel [72]

Answer:

deduction for organizational expenses = $5,000

Explanation:

Since the total startup costs are over $50,000 then the company's deduction will be lower. Generally speaking, a company can deduct up to $5,000 in organizational an startup costs ($5,000 each). But if the costs are over $50,000, then your deduction will be reduced by $1 for each dollar over that threshold.

In this case, organizational costs were $9,500, so they can deduct $5,000 during the first year and $4,500 will be amortized over the next 15 years. Startup costs are $54,500, which means that they can only deduct $5,000 - ($54,500 - $50,000) = $500 during the first year. The remaining $54,000 must be amortized over a 15 year period. Total deduction during the first year = $5,000 + $500 = $5,500

8 0
3 years ago
What are 3 benefits of adding non-QuickBooks Online clients to your Client List in QuickBooks Online Accountant
kipiarov [429]

Answer:

The answer is below

Explanation:

There are quite some benefits of adding non-QuickBooks Online clients to your Client List in QuickBooks Online Accountant, in which three amongst them are:

1. It gives the opportunity to keep all the clients' data, including documents in a specific place together

2. It gives the user a chance to easily transfer to clients, the saved documents in QuickBooks Online Accountant

3. A user can easily create projects and tasks for non-QuickBooks Online clients in the work tab in order to meet some crucial clients deadlines.

3 0
3 years ago
Pension plan assets were $200 million at the beginning of the year. The return on plan assets was 5%. At the end of the year, re
Nata [24]

Answer:

Pension plan assets at the year end will be $214

Explanation:

Wee have given pension plan assets = $200 million

Return on plan assets = 5%

So return will be equal to = $200×0.05 = $10 million

Cash contribution is given $12 million

Retiree benefits is $8 million

We have to find the amount of pension plan assets at the year end

Pension plan assets is equal to = Plan assets at beginning of the year + actual return - retiree benefits = $200 + $10 +$12 - $8 = $214

So pension plan assets at the year end will be $214

7 0
3 years ago
Other questions:
  • Predetermined Overhead Rate; Various Cost Drivers
    14·1 answer
  • A U.S. manufacturing company operating a subsidiary in an LDC (less-developed country) shows the following results: U.S. LDC Sal
    12·1 answer
  • Ready Company has two operating (production) departments: Assembly and Painting. Assembly has 150 employees and occupies 44,000
    11·1 answer
  • Investing in a global stock fund is a good idea to:
    12·1 answer
  • The following materials standards have been established for a particular product:
    7·1 answer
  • Christine and Paul are deciding how to split their time between writing music and lyrics for their new album. Their PPFs for 72
    8·1 answer
  • Recent research that analyzed the content of commercial bottled water indicates that ________. bottled water consumes less fossi
    13·1 answer
  • Suppose a farmer in Georgia begins to grow peaches. He uses​ $1,000,000 in savings to purchase​ land, he rents equipment for ​$8
    8·1 answer
  • Western Electric has 31,500 shares of common stock outstanding at a price per share of $78 and a rate of return of 13.05 percent
    7·1 answer
  • A certain organization trying to decide where to locate their future factory is considering three locations. They are taking int
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!