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3 years ago

Interest paid by a corporation is a deductible operating expense, hence it decreases the firm’s taxes. A. True B. False

Business

1 answer:

AlexFokin [52]3 years ago

7 0

Answer:

True (A)

Explanation:

Interest paid which is also known as finance cost is deductible from operating income which reduces profit before tax i.e tax base and hence, reduces company tax liability.

Interest on loan is an allowable deduction in arriving at company taxable income unlike dividend which is not allowed.

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Bruno's is analyzing two machines to determine which one it should purchase. The company requires a rate of return of 14.6 perce

Dimas [21]

Answer:

Machine A; because it will save the company about $13,406 a year

Explanation:

The computation is shown below:

Equate Annual Cost = PV of Cash Outflow ÷ PVAF (r%, n)

For Machine A:

Year CF PVF at 14.6% Disc CF

0 $3,18,000.00 1.0000 $3,18,000.00

1 $ 8,700.00 0.8726 $7,591.62

2 $8,700.00 0.7614 $6,624.45

3 $ 8,700.00 0.6644 $ 5,780.50

PV of Cash Outflow $3,37,996.58

PVAF(14.6%,3) 2.2985

PV of Cash Outflow $1,47,053.69

For Machine B:

Year CF PVF at 14.6% Disc CF

0 $2,47,000.00 1.0000 $2,47,000.00

1 $9,300.00 0.8726 $8,115.18

2 $9,300.00 0.7614 $7,081.31

PV of Cash Outflow $2,62,196.49

PVAF(14.6%,2) 1.6340

PV of Cash Outflow $1,60,459.86

So the machine cost would be purchased as it lower the cost by $13,406.17

5 0

2 years ago

The Cherokee Company uses a predetermined overhead rate. The following accounts have these unadjusted balances: Raw Materials $2

slava [35]

Answer

option b.

The answer and procedures of the exercise are attached in a microsoft excel document.

Explanation

Please consider the data provided by the exercise. If you have any question please write me back. All the exercises are solved in a single sheet with the formulas indications.

Download xlsx

5 0

3 years ago

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AURORKA [14]

Yes mhm absolutely agree yup si oui yep yeah totally

5 0

2 years ago

Mitchell, a calendar year taxpayer, is the sole proprietor of a fast-food restaurant. His adjusted basis for the building and th

siniylev [52]

Answer:

Please consider the explanation below

Explanation:

The earliest date Mitchell can purchase land and building is 4 March,2013-the date of threat of condemtion

According to section 1033 if a property similar to the property conveted , no gain shall be recognized.

b) If he elects section 1033 than there is no recognized gain.

c) His adjusted basis is $450000 cost of old land and building and plus any additional cost above $625000 what he has received.

d) he he invest in stock he does not qualify for 1033 so his recognized gain is $625000-450000=$175000.

4 0

3 years ago

Brands vary in the amount of power and value they hold in the marketplace. iconic brands like apple, google, and harley-davidson

marta [7]

Answer: " [brand] equity" .
______________________________________________
"Brands vary in the amount of power and value they hold in the marketplace. iconic brands like Apple®, Google®, and Harley-Davidson® have achieved substantial  brand equity  . "
__________________________________________________________

3 0

3 years ago