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3 years ago

Under MACRS, the salvage value ____ is

Business

1 answer:

tankabanditka [31]3 years ago

5 0

Answer:

C. Ignored

Explanation:

Marcs is a tax depreciation system that helps to determine the actual cost of an asset by depreciating it yearly. There are many aspects of this technique that allows recovering the cost basis of various assets. In MACRS salvage value is completely ignored. This technique allows the measurement of the cost of an asset by completely ignoring the salvage value.

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Suppose we have a bond issue currently outstanding that has 20 years left to maturity. The coupon rate is 8% And coupons are pai

cluponka [151]

Answer:

c. 10%

Explanation:

The Yield to Maturity(YTM) of the Bond is the cost of the debt. So, we need to find the YTM first.

Here i will use a Financial Calculator to enter and compute the YTM as follows :

N = 20× 2 = 40

PMT = ($1,000 × 8%) ÷ 2 = $40

PV = $828

P/YR = 2

FV = 1,000

I or YTM = ?

Thus the cost of the Bond is 10%

3 0

3 years ago

Non-toxic-toys currently has $400,000 of equity and is planning a $160,000 expansion to meet increasing demand for its product.

Rashid [163]

Answer:

1. $100,000 and 25%

2. $137,200 and 34.3%

3. $150,000 and 27%

Explanation:

1. It does not expand

a. Net income= $100,000 (as given in the question)

b. Return on equity= (net income)/(shareholder’s equity)

Shareholder’s equity= $400,000

Thus return on equity= 100000/400000 = 0.25 or 25%

2. It expands and issue $160,000 in debt

a. Net income= $100000 + 50000 – 12800 (debt interest 8% of $160000)

= $137,200

b. Return on equity= (net income)/(shareholder’s equity)

= 137200/400000

=0.343 or 34.3%

3. It expands and raises equity of $160000

a. Net Income= $100000 + 50000

= $150000

b. Return on equity= (net income)/(shareholder’s equity)

= 150000/(400000 + 160000)

Where ($560,000) 400000 + 160000 is shareholder’s equity

= 0.27 or 27%

5 0

4 years ago

XYZ Co. has forecasted June sales of 400 units and July sales of 700 units. The company maintains ending inventory equal to 125%

Gnesinka [82]

Answer:

775 units

Explanation:

By forecast,

June sales = 400 units

July sales = 700 units

if ending inventory equal to 125% of next month's sales

Then June's ending inventory = 125% × 700

= 875 units

May's ending inventory = 125% × 400

= 500 units

Opening inventory + production - sales = closing inventory

Using the formula above, where p = production

500 + p - 400 = 875

p = 875 - 100

p = 775

Production required for June is 775 units.

7 0

3 years ago

Greet the customer and thank them for contacting our company

Verdich [7]

Answer:

Explanation:

7 0

4 years ago

Ferkil Corporation manufacturers a single product that has a selling price of $100 per unit. Fixed expenses total $225,000 per y

ahrayia [7]

Answer:

Break-even point in units= 6,500 units

Explanation:

Giving the following information:

Selling price per unit= $100

Fixed expenses total $225,000 per year

Break-even point= 5,000

Desired profit= $67,500

<u>First, we need to calculate the contribution margin per unit:</u>

Break-even point in units= fixed costs/ contribution margin per unit

5,000= 225,000 / contribution margin per unit

contribution margin per unit= 225,000/5,000

contribution margin per unit= $45

<u>Now, we can determine the number of units to be sold:</u>

Break-even point in units= (fixed costs + desired profit) / contribution margin per unit

Break-even point in units= (225,000 + 67,500) / 45

Break-even point in units= 6,500 units

4 0

3 years ago