1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Verizon [17]
3 years ago
8

Arsenal Company is considering an investment in equipment costing $30,000 with a five-year life and no salvage value. Arsenal us

es straight-line depreciation and is subject to a 35 percent tax rate. The expected net cash inflow before depreciation and taxes is projected to be $20,000 per year. Over the life of the project, the total tax shield created by depreciation is: Select one: A. $10,750 B. $10,500 C. $20,400 D. $39,600
Business
1 answer:
sammy [17]3 years ago
3 0

Answer:

option (B) $10,500

Explanation:

Data provided in the question:

Cost  = $30,000

Useful life = 5 years

Salvage value = 0

Tax rate = 35%

Expected net cash inflow before depreciation and taxes = $20,000 per year

Now,

The total tax shield created by depreciation over the life of project

= Tax rate × ( Amount of depreciation over the life of project )

= 35% × ( Cost - Salvage value )

= 0.35 × ( $30,000 - 0 )

= $10,500

Hence,

The answer is option (B) $10,500

You might be interested in
What is important to know about yourself when making a career choice?
yaroslaw [1]
It’s important to know your limits and your strengths.
The goal is to do your best in the job you have, so before making that important choice, it’s good to think about maybe your talents or hobbies that you have.
You could ask yourself questions such as:

Do I communicate well with people?

What am I best at?

Am I able to fulfill the tasks that are included in this career?

And I’m sure there are more questions, but it is a good thing to know yourself that way when you apply for a job, you know what you’re getting into.

I hope this helps!
~Brooke❤️
5 0
4 years ago
Use the information in the chart to calculate the real exchange rate between the U.S. dollar and the Indian rupee. Round to the
JulsSmile [24]

Answer: 52.51 rupees/dollar

Explanation:

The real exchange rate attempts to account inflation in the countries being compared by using prices in the exchange rate.

The formula for calculating it is;

Real exchange rate = Nominal exchange rate *(Price index of domestic country/Price index of foreign country)

Real exchange rate in 2014 = 57*(99.5/108)

= 52.51 rupees/dollar

3 0
3 years ago
On January​ 1, 2018, Jordan Company acquired a machine for​ $1,090,000. The estimated useful life of the asset is five years. Re
anyanavicka [17]

Answer:

$206000.

Explanation:

Given: Asset purchase value = \$ 1090000

          Residual value after five years= \$ 60000

          Estimated useful life of asset= five years.

Now, we will calculate depreciation per year using straight line method.

Depreciation= \frac{(purchased\ value\ of\ asset - residual\ value)}{estimated\ useful\ life\ of\ asset}

⇒ Depreciation = \frac{(1090000 - 60000)}{5} = \frac{1030000}{5}

∴ Depreciation expense per year = \$ 20600

3 0
3 years ago
What is distinctive about double-entry accounting?
sukhopar [10]

Answer:

the answer to your question is d

7 0
3 years ago
Turner, a billing executive, goes directly above his immediate boss, Ally, to Charlie for permission to take his lunch break 30
SSSSS [86.1K]

Answer: Option A    

 

Explanation: In simple words, Scalar principle refers to the rule under which a subordinate is obligated to report his or her actions to the immediate supervisor and not the higher management.

In the given case, Turner asked from his superior to take lunch break early which in turn resulted in the perception that it is allowed in the organisation. Therefore, turner gave authority to his subordinates and other co workers the of the department to do the same also.

Hence from the above we can conclude that the correct option is A.

5 0
3 years ago
Other questions:
  • In todayâs workplace, teams are a vital force, and the majority of business professionals must collaborate on the job. The trend
    8·1 answer
  • A 25-year maturity bond with par value $1,000 makes semiannual coupon payments at a coupon rate of 8%. a. Find the bond equivale
    8·1 answer
  • Strategic mgmt the two best reasons for investing company resources in vertical integration (either forward or backward are to
    8·1 answer
  • Gabriel is writing a proposal on how to improve efficiency at an Amazon distribution center. In order to structure the proposal
    6·1 answer
  • The primary advantages of the average rate of return method are its ease of computation and the fact that a.rankings of proposal
    10·1 answer
  • 20. Which of the following is not a difference between monopolies and perfectly competitive markets? a. Monopolies can earn prof
    8·1 answer
  • Suppose that Brazil imports semiconductors from the United States. The free market price is $30.00 per semiconductor. If the tar
    7·1 answer
  • A firewall can help to prevent which type of security breach?
    8·2 answers
  • Which of the following is not a benefit of contributing to a retirement account
    11·2 answers
  • Sugarland Company is using new cost drivers for its accounting system. One driver material handling for unit variable costs and
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!