Answer:
$25,800
Explanation:
The units-of-production deprecation method depreciates an asset based on the total units produced each year.
Unit of production depreciation expense = (units produced / total expected units of production) × (cost of asset - salvage value)
(64,500 / 300,000) x ($135,000 - $15,000)
0.215 x $120,000 = $25,800
I hope my answer helps you
Answer:
A zero coupon bond:
A. is sold at a large premium.
B. has a price equal to the future value of the face amount given a positive rate of return.
C. can only be issued by the U.S. Treasury.
D. has less interest rate risk than a comparable coupon bond.
E. has a market price that is computed using semiannual compounding of interest.
Answer is : B
Explanation:
In classification of bonds we have a unique type of bond known as Zero-coupon bonds also know as Pure discount bonds, unlike traditional bonds they don’t pay coupon instead they are sold on discount basis and on maturity the bondholder receive a par value, for this reason the price will be at a discount on sale and on maturity be redeemed at par price showing a positive rate of return.
Answer: b. 233,500
Explanation:
The expected cashflow is;
= (EBIT * (1 - tax) ) + Depreciation - change in net working capital - capital expenditure
= (270,000 * (1 - 25%)) + 85,000 - 19,000 - 35,000
= $233,500
Answer:
$669,950
Explanation:
Computation of taxable income
Bali’s net book income before tax$605,800 Excess of book over tax depreciation25,600
Book gain on equipment sale$(23,000)
(53,000-27,400)
Tax gain on equipment sale38,000 15,000
(23,000-38,000=15,000)
Nondeductible loss on sale to related party 23,550
(75,000-51,450)
Taxable income$669,950
(605,800+25,600+15,000+23,550)
Therefore the taxable income will be $669,950
