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jolli1 [7]
3 years ago
5

If the depreciable investment is $1,000,000 and the MACRS 5-Year class schedule is: Year-1: 20%; Year-2: 32%; Year-3: 19.2%; Yea

r-4: 11.5%; Year-5: 11.5% and Year-6: 5.8% Calculate the depreciation tax shield for Year-2 using a tax rate of 30%:
Business
1 answer:
alexdok [17]3 years ago
5 0

Answer: C.$96,000

Explanation:

The Depreciation Tax Shield refers to how much in taxes are being saved by the company for depreciating an asset because Depreciation is tax deductible.

Depreciation Tax Shield = Tax Rate * Depreciation Amount for year

= 30% * ( 1,000,000 * 32%)

= 30% * 320,000

= $96,000

By claiming a Depreciation of $320,000 in Year 2, the depreciable asset saved the company $96,000 in taxes.

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In risk management, what does risk control include?
dimaraw [331]

Answer:

What are the three basic categories of control? Educational/awareness, physical, supervision 5. How do you implement controls? Ensure controls are communicated to those involved in the activity.

8 0
3 years ago
Suppose Larry would like to invest $6,000 of his savings. One way of investing is to purchase stock or bonds from a private comp
Zina [86]

Answer:

The answers are:

  1. equity
  2. claim to partial ownership
  3. bondholders

Explanation:

Equity financing: refers to the process of raising money by selling company's shares or stock.  

Claim to partial ownership: when an individual or business buys a share from another company, it becomes a partial owner.

Bondholders: refers to individuals or companies that own bonds issued by a private company or by a government entity.

7 0
4 years ago
Information for Kent Corp. for the year 2021:
Inessa05 [86]

Answer:

$5,082

Explanation:

Calculation of the balance in Kent's deferred tax liability account as of December 31, 2021

Using this formula

Deferred tax liability balance =Cumulative future taxable amounts*Enacted tax rate

Where,

2021 Cumulative future taxable amounts =$24,200

Enacted tax rate=21%

Let plug in the formula

Deferred tax liability balance =$24,200*21%

Deferred tax liability balance =$5,082

Therefore the balance in Kent's deferred tax liability account as of December 31, 2021 will be $5,082

6 0
3 years ago
Due to the rise of large-scale production, the influx of peasants to urban areas to find work, and the development of a system o
Strike441 [17]

Answer:

Barter system

Explanation:

Barter system - it is system of exchanging the good and service with others good and service in that return. the main point to note in this is that medium of offering services and goods is ignored i.e. money.

these type of system is used in society from centuries and long time back before money was introduced.

8 0
3 years ago
Jordan Company budgeted sales of 400,000 calculators at $40 per unit last year. Variable manufacturing costs were budgeted at $1
MariettaO [177]

The minimum price Jordan would accept for this special order is $22

Explanation:

Special order 40,000 calculators

Order price $23

Total order price = 40,000× $23  = 920,000

Total order price = 40,000× $23  = 920,000

Note : according to the question.,there is no need for fixed manufacturing costs

Total cost Estimation = (Variable cost +estimated additional cost )×T.units

 = (19 + 3) = 22 ×40,000 units = 880,000

= (19 + 3) = 22 ×40,000 units = 880,000

profit from this order = 23-22 = 1 per unit ×40,000 = 40,000

The minimum price Jordan would accept for this special order is $22

                                   

3 0
3 years ago
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