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Elan Coil [88]
4 years ago
11

Your firm needs a computerized machine tool lathe which costs $53,000 and requires $12,300 in maintenance for each year of its 3

-year life. After three years, this machine will be replaced. The machine falls into the MACRS 3-year class life category. Assume a tax rate of 34 percent and a discount rate of 12 percent.Calculate the depreciation tax shield for this project in year 3.
Business
1 answer:
Sholpan [36]4 years ago
3 0

Answer:

The depreciation tax shield for this project in year 3 is $2668.76

Explanation:

Depreciation in year 3 = 14.81%*53000

                                      = $7849.3

tax shield will = $7849.3*34%

                       = $2668.76

therefore, The depreciation tax shield for this project in year 3 is $2668.76

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A door-to-door vendor of vacuum cleaners tells a potential customer that the vacuum cleaners "slurp up dirt faster than a sweat-
Svetach [21]

Answer:

b. No, because the vendor's sales puffery would not be considered fraud.

Explanation:

A fraud is intentional deception to gain wrongful advantage. The vendor of vacuum cleaner does not have the intention to deceive customer. The vendor tells the customer that the vacuum cleaner slurps the dirt but the cat hair cleaning was not discussed. The vacuum cleaner does not clean the cat hair from the carpet but this was not mentioned by the vendor at the point of sale.

4 0
3 years ago
Which of the following is not a name for indirect resources? Multiple Choice Overhead costs Burden Direct costs Common costs
Levart [38]

Answer:

Direct costs

Explanation:

In a business or project of any type, overhead or overhead costs are called expenses for the mere fact of having an activity in operation.  Examples are the costs of gas, electricity, cleaning, rent or the salary of workers. The term is usually used to cover the expenses necessary to not cease the activity, but that are not directly related to the products or services offered, 1 that is, they do not increase the profits of the company. General expenses are costs on the income statement, with the exception of direct work, direct materials and direct expenses. General expenses include accounting, depreciation, insurance, interest, legal fees, repairs, rent, purchased materials, taxes, telephone bills, utility expenses and travel.

Workload or the labor cost or burden cost is the real value of an employee, as well as the salary earned by an employee. Workload costs include benefits that a company must pay or choose for employees on its payroll list. These costs include payroll taxes, retirement costs, health insurance, dental insurance, and other benefits provided to employees of a company. The company should pay for sick leave, vacations or study periods as part of the workload as there is a cost to the company.

Direct cost is a price that can be directly related to the production of certain goods or services. The direct cost can be tracked down to a cost item that could be a service, product or department. Direct and indirect costs are the two main types of costs that companies can incur, or expenses. Direct costs are often variable costs, such as production levels, such as inventory. However, some of the costs, such as indirect costs, are more difficult to entrust to a particular product. Examples of indirect costs include depreciation and administrative costs.

The common cost is the cost associated with the operation of an object, product or segment that is shared between two or more departments or users. In other words, it is a common expense to create a product or provide a service that cannot be linked to a department or user.

3 0
3 years ago
Walmart and Target are the only stores in a remote town that currently stock and sell the PlayStation 5 video game console. Mana
dexar [7]

Answer:

collude with each other

Explanation:

A monopoly market structure is the structure in which the chances of high profit are there. In the case when the two firms and they work together so that the can extract the maximum profits and after that they shared themselves

As in the given question, in the case when Walmart and Target collude with each other so they would charge $1.500 and earned highest profit available

The same would be considered

8 0
3 years ago
a. After the magazine The Economist publishes an article indicating that analysts expect the value of Tunisian dinars to rise re
german

Answer: Depreciate

Explanation:

The Economist is a widely respected financial and economic magazine which means that their articles can cause movements in the market especially when backed up by analysts.

The Economist believes that the Tunisian Dinar will rise relative to the Peruvian Sol, this means that the Peruvian Sol will depreciate against the Tunisian Diner. Some people and entities holding Peruvian Sol assets will try to offload it so that they do not suffer losses.

This increase in supply and reduction in demand for the Peruvian Sol will lead to it depreciating.

3 0
3 years ago
The tiny isolationist nations of Lorland and Zhangia are considering opening their borders to trade with each other. Both nation
Svetlanka [38]

Answer:

Lorland

Zhangia

sandals

smoothies

Explanation:

A country should specialise goods for which it has a comparative advantage in its production.

A country should import goods for which it has no comparative advantage in its production.

A country has comparative advantage in production if it produces at a lower opportunity cost when compared to other countries.

Lorland

Opportunity cost in the production of one smoothie = 8/2 = 4

Opportunity cost in the production of one sandal = 2/8 = 0.25

Zhangia

Opportunity cost in the production of one smoothie = 5/1 = 5

Opportunity cost in the production of one sandal = 1/5 = 0.2

Zhangia has a comparative advantage inn the production of sandals and should specialise in the production of sandals while lorland has a comparative advantage in the production of smoothies specialise in the production of smoothies

Loriland should import sandals and export smoothies

6 0
3 years ago
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