Answer:
a. Present value of tax shield = $25.93
b. Present value of tax shield = $111.80
c. Tax shield = $350
Explanation:
a. Tax shield = Loan * rate * tax rate
Tax shield = 1,000 * 8% * 35%
Tax shield = $28
Present value of tax shield = 28 / (1+8%)
Present value of tax shield = 28 / 1.08
Present value of tax shield = 25.92592593
Present value of tax shield = $25.93
b. Tax shield each year = 28
Present value of tax shield = 28 / (1+8%)^1 + 28 / (1+8%)^2 + 28 / (1+8%)^3 + 28 / (1+8%)^4 + 28 / (1+8%)^5
Present value of tax shield = 28/1.08 + 28/1.1664 + 28/1.25971 + 28/1.36049 + 28/1.46933
Present value of tax shield = 111.795875652
Present value of tax shield = $111.80
c. Tax shield = Perpetuity * tax rate
Tax shield = 1000 * 35%
Tax shield = $350
Answer:
An increase of $54
Explanation:
Any increase in current assets will decrease in cash. On the other hand, any decrease in current assets will increase cash balance.
Inversely, any increase in current liabilities will increase cash and any decrease in current liabilities will decrease cash balance of the period.
Increase in inventories ($248)
Increase in accounts payable $186
Decrease in accounts receivable $139
Decrease in other current asset $61
Decrease in other current liabilities ($84)
Total change $54 - an increase in cash
A $60,000 outlay for a new machine with a usable life of 15 years is called <u>capital</u><u> </u><u>expenditure</u>.
Capital expenditure is the cash spent with the aid of the authorities on the development of machinery, gadget, construction, health facilities, education, and many others. It is also the expenditure incurred on acquiring constant assets like land and funding via the authorities that offer profits or dividends in destiny.
Capital expenditures are lengthy-time period investments, which means the belongings bought have a useful lifestyle of 365 days or extra. kinds of capital expenditures can encompass purchases of assets, systems, land, computer systems, furniture, and software program.
Capital expenditure or capital rate is the money a company or company entity spends to shop for, hold, or improve its constant assets, such as homes, cars, equipment, or land.
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Answer:
The Journal entry at the beginning of the year is as follows:
Estimated revenue A/c Dr. $1,342,500
Estimated other financing sources-Bonds proceeds A/c Dr. $595,000
To Appropriations control $960,000
To Appropriations-Other financing uses-operating transfer outs $532,500
To Budgetary fund Bal. $445,000
(To record entry at the beginning of the year)
Answer: Donors(people donating for the progress of the society).
Explanation:
The solution or answer to this exam or problem or question can be seen or found in the first sentence of the question, that is;
"Total Accounting has developed new software for nonprofit organizations that allows them to send DONORS receipts via text or email".
Take note of the capitalized word, " donors" because that is the simplest answer to the question.
Therefore, the software was built and designed for people that are going to be donating or giving back to the society. The software is built in such a way that the Total Accounting marketing team can track who donors are.