Answer:
A firm is deciding how much of its equipment to sell so that it can reduce its monthly loan payments for equipment.
Answer:
Canton Corporation
Income Statement for December 31, 2016
$
income from continuing operations before income taxes 110,000
Less: Income Tax 30% <u>38,500</u>
Income from continuing operations 71,500
Gain on disposal of discontinued component 28,000
Tax on disposal of discontinued component (8,400)
Loss from operations of discontinued component <u>(50,000)</u>
Net loss from discontinue operations <u>(30400)</u>
Total Comprehensive Income <u>41,100</u>
Tax expenditures are government revenue losses that are gotten from tax exclusions, deductions, credits, deferrals, and preferential tax rates.
<h3>What are
Tax expenditures?</h3>
Your information is incomplete. Therefore, an overview will be given. Tax expenditures are special provisions such as exclusions, deductions, deferrals, credits, and tax rates which benefit specific activities or groups of taxpayers.
It should be noted that tax expenditures are both widespread and costly, but are not subject to the same level of scrutiny in the budget process.
Learn more about tax on:
brainly.com/question/25783927
Answer:
the share should sell at $46
Explanation:
We use the CAPM method to know the required return of the capital
risk free 0.04
market rate 0.1
beta(non diversifiable risk) 2
Ke 0.16000 = 16%
Now we calculate with the dividends grow model the intrinsic value of the share:
$4.6/0.1 = $46
<span>Profit = ($1.7 - $0.6) * 20,000 - $6,000 = $16,000
ROI = ($16,000 - $100,000)/$100,000 = -0.84</span>