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nexus9112 [7]
3 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]3 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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Which inventory costing method generally results in the most recent costs being assigned to ending inventory?
BaLLatris [955]

FIFO  inventory costing method generally results in the most recent costs being assigned to ending inventory.

Inventory costing also referred to as stock cost accounting is when groups assign expenses to merchandise. these fees additionally consist of incidental costs consisting of the garage, management, and market fluctuation.

Stock price control has many aspects, such as financing, device, labor, shielding measures, coverage, handling, obsolescence, losses via pilferage, and the possible value of selecting to deal with an inventory. these elements all integrate to create the full price of conserving inventory costs.

The inventory cost method consists of starting stock cost, ending inventory cost, and purchase expenses over a fixed time period. more succinctly, it seems like: stock cost = [beginning inventory + inventory purchases] - finishing stock.

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3 0
2 years ago
On a 100-acre farm, a farmer is able to produce 3,000 bushels of wheat when he hires 2 workers. He is able to produce 4,400 bush
olasank [31]

Answer:

Option (a) is correct.

Explanation:

According to the law of diminishing marginal productivity, if there is an increase in the input in the production of a certain commodity then as a result there is an increase in the output of that commodity, initially but further increase in the input will have no impact on the output of the commodity or will have a negative impact.

In our case, when farmer hires 3rd worker, the output increases by 1,400(4,400-3,000) bushels. According to the law of diminishing marginal productivity, if he hires 4 workers then there is an increase in the output but less than the 1,400 bushels.

This condition will be satisfied in the option (a), where output increases by 1,200 bushels.

7 0
3 years ago
If price paper spends an additional on advertising, sales volume should increase by units. what effect will this have on operati
olya-2409 [2.1K]

Disclaimer- The complete question is-

Prince Paper has budgeted the following amounts for its next fiscal year:

Total fixed expenses $300,000​

Selling price per unit $60​

Variable expenses per unit $25​

If Price Paper spends an additional $12,800 on advertising, sales volume should increase by 1000 units. What effect will this have on operating income?

If Price Paper spends an additional $12,800 on advertising, sales volume increases by 1000 units. The operating income will be 22,200.

Selling price per unit $60​ = 60(1000 units) = 60,000

Variable expenses per unit $25​ = 25(1000 units) = 25,000

FE advertising = 12800

Operating income = Total Revenue – Direct Costs – Indirect Costs

                              = 60,000 - 25,000 - 12800 = 22,200

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6 0
1 year ago
An investor purchased 50 shares of stock in a company in 2015. At the time the investor purchased the stock, the value of the st
frutty [35]

Answer:

$75

Explanation:

$5 to $6.5 is a 1.3% increase and if the investor bought 50 shares of $5 he bought a total of $250 worth of stock. If you multiply the $250 by 1.3% it will be $325. But the question asks for the capital gain so you would subtract $325 and $250 which is $75.

3 0
2 years ago
Sales revenue $350,000 Accounts receivable $280,000 Ending inventory $230,000 Cost of goods sold $180,000 Sales returns $50,000
sesenic [268]

Answer:

$100,000

Explanation:

The computation of gross profit is shown below:-

Gross profit = (Sales revenue - Sales return - Sales discount) - Cost of goods sold

= ($350,000 - $50,000 - $20,000) - $180,000

= $280,000 - $180,000

= $100,000

Therefore we simply applied the above formula for determining the gross profit

4 0
3 years ago
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