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ELEN [110]
3 years ago
14

You purchased a machine for $ 1.15 million three years ago and have been applying​ straight-line depreciation to zero for a​ sev

en-year life. Your tax rate is 40 %. If you sell the machine today​ (after three years of​ depreciation) for $ 793 comma 000​, what is your incremental cash flow from selling the​ machine? g
Business
1 answer:
zlopas [31]3 years ago
7 0

Answer:

The incremental cash flow from selling the​ machine is $738,657

Explanation:

In order to calculate the incremental cash flow from selling the​ machine we would have to calculate the following formula:

incremental cash flow = sale price - (sale price - book value)*tax

Book value = $1,150,000 - $1,150,000/7*3

Book value =$657,142.86

Therefore,  incremental cash flow =$793,000-($793,000-$657,142.86 )*40%

incremental cash flow =$738,657

The incremental cash flow from selling the​ machine is $738,657

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A property was purchased two years ago for $300,000; the investor just sold the property for $379,000. What was the percentage o
ikadub [295]

Answer:

percentage of profit is 26.3%

Explanation:

given data

purchase property cost = $300,000

time = 2 year ago

sold  property = $379,000

solution

we get here percentage of profit in relation to the cost

first we get here percentage value increase  that is

percentage value increase = \frac{379000}{300000}

percentage value increase = 1.263

percentage value increase = 126.3%

so here 1 in 1.263 represent you the original cost

so profit % = 1 - 1.263

profit % = 26.3%

3 0
3 years ago
Presented below is information available for Concord Corporation. Current Assets Cash $ 4500 Short-term investments 50500 Accoun
disa [49]

Answer:

2.42 times

Explanation:

The computation of the acid test ratio is shown below:

Acid test ratio = Quick Assets ÷ Current liabilities

where,

Quick Assets = Cash + short term investment + account receivable

                      = $4,500 + $50,500 + $66,000

                      = $121,000

And, the current liabilities is $50,000

So the acid test ratio is

= $121,000 ÷ 50,000

= 2.42 times

Basically we applied the above formula to find out the acid test ratio

3 0
3 years ago
For each of the following accounts, indicate the effect of a debit or credit on the account and the normal balance. Debit Effect
salantis [7]

Answer:

                                             Debit  Credit  

A Bonds payable                    Decrease Increase  

b. Unearned Service Revenue Decrease Increase  

c. Depreciation Expense      Increase Decrease      

d. Common Stock                    Decrease Increase  

e. Buildings.                            Increase Decrease  

f. Rent Revenue.                   Decrease Increase  

 

Explanation:

Debit  Credit  

A Bonds payable Decrease Increase  

Bonds payable are a form of long term debt usually issued by corporations, hospitals, and governments.    

b. Unearned Service Revenue Decrease Increase  

Unearned Service Revenue is a liability account that is used to record advanced collections from clients. In other words, it pertains to revenue already collected but the service has not yet been rendered    

c. Depreciation Expense Increase Decrease  

Depreciation expense is the amount of depreciation that is reported on the income statement.    

d. Common Stock Decrease Increase  

Common stock is a security that represents ownership in a corporation.    

e. Buildings.  Increase Decrease  

A building, or edifice, is a structure with a roof and walls standing more or less permanently in one place, such as a house or factory    

f. Rent Revenue. Decrease Increase  

Rent Revenue is the title of an income statement account which (under the accrual basis of accounting) indicates the amount of rent that has been earned during the period of time indicated in the heading of the income statement.    

7 0
3 years ago
You must complete parts 1, 2, 3, 4, 6, 7 and 8 before attempting to complete part 9. Part 5 is optional.
Crank

Answer:

Sales (Dr.) $45,000

Income Summary (Cr.) $45,000

Income summary (Dr.) $63,900

Advertising Expense (Cr.) $1,200

Rent expense (Cr.) $5,600

Office Supplies Cost (Cr.) $9,800

Insurance Expense (Cr.) $7,000

Sales Returns (Cr.) $2,900

Interest Expense (Cr.) $3,200

Cost of Goods sold (Cr.) $27,500

Selling and administrative expense (Cr.) $6,700

Income Summary (Dr.) $250,000

Capital investment (Cr.) $ 250,000

Explanation:

Closing entries are prepared to close business transactions that occurred during the month. These transactions are closed with a contra account of Income Summary. All debit balance are credited with a debit of Income summary account and vice versa. the temporary account balances are reset to zero after closing entries are passed.

4 0
3 years ago
After successfully completing your corporate finance class, you feel the next challenge ahead is to serve on the board of direct
nignag [31]

Answer:

It will cost you $12,015,054 to buy a seat.

Explanation:

cost to buy a seat = number of shares to be owned*cost per share

                              = (one half of outstanding shares + 1)*cost per share

                              = (445,000/2 + 1)*$54

                              = $12,015,054

Therefore, It will cost you $12,015,054 to buy a seat.

3 0
3 years ago
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