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exis [7]
3 years ago
11

You consider purchasing a new computing system, including networking, for your sales force for $112,000. The system has a 6-year

useful life and no salvage value. Your sales force is expected to generate an additional $37,000 of net income before taxes and depreciation each year by using this upgraded system. The combined federal and state income tax rate = 40%, Annual inflation = 400.
A. Fill in the following table assuming MACRS depreciation rates.
Year Pre-Income Depreciation Taxable Tax After tax Inflation Real
Tax income owed income adjustment after tax
factor Income
1 $37,000 $22,400
2 $37,000
3 $37,000
4 $37,000
5 $37,000
6 $37,000
B. Ifyour MARR-15%, should you purchase this system based on your real after-tax income? Why or why not?
Business
1 answer:
pshichka [43]3 years ago
4 0

Answer:

I am sorry

Explanation:

I dont do business

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On November 1, 2021, Sandhill Co. places a new asset into service. The cost of the asset is $84000 with an estimated 10-year lif
Aneli [31]

Answer:

$7,200

Explanation:

According to the scenario, computation of the given data are as follows,

Total cost = $84,000

Salvage value = $12,000

Estimated life = 10 years

So, we can calculate depreciation expense by using following formula,

Depreciation yearly = (Total cost - Salvage value) ÷ Estimated life

= ($84,000 - $12,000) ÷ 10

= $72,000 ÷ 10

= $7,200

7 0
2 years ago
On January 1, 2019, Oriole Company purchased the following two machines for use in its production process.
Zarrin [17]

Answer and Explanation:

The journal entries are shown below:

1  Equipment   $53,420

     To Cash  $53,420

(Being the equipment is purchased for cash is recorded)

The computation is given below:

= Cash price of machine + sales tax + shipping cost + insurance during shipping + installation and testing cost

= $49,500 + $3,650 + $100 + $60 + $110

=  $53,420

2. Depreciation expense $9,614

      To Accumulated Depreciation - Equipment  $9,614

(Being the depreciation expense is recorded)

The computation is shown below:

= ($53,420 - $5,350) ÷ ( 5 years)

= $9,614

5 0
3 years ago
Emerging adults are in a high-risk category for _____.
mario62 [17]
For many things identity theft, to be treated as if they don’t know as much etc
8 0
3 years ago
In a period of falling interest rates, a bond dealer would engage in which of the following activities?I Raise prices in interde
vredina [299]

Answer:

C. I, II, III

Explanation:

In a period of falling interest rates, a bond dealer would engage in all of the following activities except for IV. Therefore, a dealer would raise his quoted price in Bloomberg. If the dealer has an appreciated bond that he wishes to sell, he can place ''Request for Bids'' for those bonds in Bloomberg. The dealer may buy bond the he has previously sold short to limit losses due to rising price. To protect existing short position against the rising price, the dealer will buy call options, not put options. Put options are used in protecting existing long position from falling price.

8 0
3 years ago
You are considering buying one of two types of health insurance, both with the same premium. You guess that in the next year the
dybincka [34]

Answer and Explanation:

The computation is shown below:

a. The expected value of payout arise from emergency is

= 0.01 × $67,500

= $675

b. The expected value of payout arise from capped coverage insuance is

= (0.9 × $500) + (0.09 × $2,500)

= $675

c. The risk averse shows the minimum exposure with respect to the swings of the income or there would be the loss in the income. Since the payout amount is same in both the cases so here we considered option B

8 0
2 years ago
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