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nexus9112 [7]
4 years ago
14

You own some equipment that you purchased four years ago at a cost of $287,000. The equipment is five-year property for MACRS. T

he MACRS rates are .2, .32, .192, .1152, .1152, .0576, for years 1 to 6, respectively. You are considering selling the equipment today for $99,000. Which one of the following statements is correct if your tax rate is 35 percent?
A. The tax due on the sale is $17,357.76.
B. The book value today is $49,406.40.
C. The accumulated depreciation to date is $270,468.80.
D. The taxable amount on the sale is $49,593.60.
E. The aftertax salvage value is $81,707.76.
Business
1 answer:
jasenka [17]4 years ago
6 0

Answer:

E. The aftertax salvage value is $81,707.76.

Explanation:

The computation is shown below:

Accumulated depreciation is

= $287,000 × ( .2 + .32 + .192 + .1152)

= $237.406.40

Now the book value is

= Purchase value - accumulated depreciation

= $287,000 - $237,406.40

= $49,593.60

And, the selling value is $99,000

So after tax salvage value is

= Salvage value - (Salvage value - book value) × tax rate

= $99,000 - ($99,000 - $49,593.60) × 35%

= $81,707.76.

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Assuming Net Income for the year is $250,000, what is the net operating cash flows given the following information:
Musya8 [376]

Answer:

Operating Cash Flows $215,850

Explanation:

Calaculation of Net operating Cash flow

Net Income$250,000

Adjustments for noncash effects:

Depreciation Expense 6,000

Loss on sale of asset 1,350

Changes in current assets and current liabilities:

Increase in Salaries Payable 19,500

Increase in Prepaid Rent(29,000)

Increase in Accounts Payable 29,000

Increase in Inventory(61,000)

Operating Cash Flows $215,850

6 0
3 years ago
When retained earnings are not enough to meet their long-term funding needs, businesses may be able to raise funds by:
eimsori [14]

Answer:

A.selling common stock.

Explanation:

A business raises capital through debt or equity. Debts represent borrowed funds, which include bonds and loans. Equity represents the owner's funds, which comprises of shares and retained earnings.

Should a business not have enough funds for its long term needs, it can sell more shares to the existing shareholders or the general public.  Shares represent ownership of the company. Selling common stock means that the company will receive the funds it requires in exchange for ownership rights.  Shareholder earns dividends as a reward for providing capital to businesses.

4 0
4 years ago
Consider the recorded transactions below.
AnnZ [28]

Answer:

1. T-accounts:

Accounts                           Debit        Credit

Accounts Receivable

Balance                           $4,200

Service Revenue              8,400

Cash                                                 10,200

Accounts                           Debit        Credit

Service Revenue

Accounts Receivable                         8,400

Accounts                           Debit        Credit

Supplies

Balance                              $400

Accounts Payable            2,300

Balance c/d                                       $2,700

Accounts                           Debit        Credit

Accounts Payable

Balance                                            $3,500

Supplies                                             2,300

Cash                                $3,700

Balance c/d                      $2,100

Accounts                           Debit        Credit

Cash Account

Balance                           $3,400

Accounts Receivable      10,200

Advertising                                       $1,000

Accounts Payable                              3,700

Deferred Revenue            1,100

Balance c/d                                    $10,000

Accounts                           Debit        Credit

Advertising Expense

Cash                                  1,000

Accounts                           Debit        Credit

Accounts Payable

Cash                                3,700

Accounts                           Debit        Credit

Deferred Revenue

Balance                                             $300

Cash                                                   1,100

Balance c/d                      $1,400

Explanation:

a) Data:

General Entries:

Accounts                           Debit        Credit

1. Accounts Receivable   8,400

Service Revenue                                  8,400

2. Supplies                      2,300

Accounts Payable                                2,300

3. Cash                           10,200

Accounts Receivable                         10,200

4. Advertising Expense   1,000

Cash                                                     1,000

5. Accounts Payable      3,700

Cash                                                    3,700

6. Cash                            1,100

Deferred Revenue                              1,100

b) The beginning balance of each account before the transactions is:

Cash, $3,400

Accounts Receivable, $4,200

Supplies, $400

Accounts Payable, $3,500

Deferred Revenue, $300

6 0
3 years ago
In 2000, the population at arlington middle school was approximately 421 students. in 2010, the population was approximately 584
Finger [1]

Answer:

The population increased in 163 people which represents an increase in 38.72%

Explanation:

Year:Population

2000:421

2001: 584

The simple percentage change method formula is:

((Final value-Initial value)/ Initial value)*100

((584-421)/421)*100=38.72%

The population increased in 163 people which represents an increase in 38.72%.

3 0
4 years ago
the coca-cola company collects and analyzes data sales as well as social media, vending machines, and self-serve soft drink foun
Kitty [74]

Cherry Sprite was made available as a different taste in canned soft drink by the firm. Examples of external data include these data.

<h3>What is external data?</h3>
  • Information that comes from elsewhere in the company and therefore is easily accessible to the general public is referred to as external data. A corporation can improve its grasp of the environment in which it operates by using external data.
  • You may learn more about what your competitors are doing by using external data sources. You can also learn how market dynamics, consumer behavior trends, as well as the weather can affect your performance.
  • Information, statistics, and trends that businesses learn through their operations are referred to as internal data. Businesses can recognize, take note of, and even discuss sales trends, customer behavior patterns, software usage patterns, operational lessons, and survey data.

To learn more about external data refer to :

brainly.com/question/6867154

#SPJ4

7 0
1 year ago
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