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LUCKY_DIMON [66]
3 years ago
9

A company is considering replacing an old machine, which has a market value of $95,000 and a tax basis of $145,000. The new mach

ine would cost $210,000 and would cause a $25,000 reduction in working capital because of the need for fewer spare parts. If the company’s tax rate is 39%, what would be the initial cash outlay for this replacement project?
Business
1 answer:
melamori03 [73]3 years ago
8 0

Answer:

$120,500

Explanation:

Net cash outflow for the new machine = Cost of new machine + net working capital - salvage value of old machine + tax (salvage value of old machine - book value of old machine)

tax (salvage value of old machine - book value of old machine) =

0.39 x ($95,000 - $145,000) = $-19,500

$210,000  + $25,000 - $95,000 -$19,500 = $120,500

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Which of the basic organizational functions records all financial activity from billing customers to paying employees: Accounting

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5 0
2 years ago
Jason Graham's startup, which is in the electronics industry, was launched on January 1, 2009. However, prior to its formal laun
Bas_tet [7]

Answer:

C) sweat equity

Explanation:

The definitions ok sweat equity are:

1. Increase in the value of a business (beyond the money invested) created by the unpaid mental and / or physical work of the founder / owner.

2. Increase in the value of a property (beyond its purchase price) created by the hard work of the owner / occupant in improving its comforts and / or appearance.

3. An additional percentage of a company's common stock (common stock) allocated to senior executives (beyond their current stock) as additional motivation to continue working hard for the success of the company.

8 0
3 years ago
Read 2 more answers
Which of the following types of documents is used to ensure that the project has clear boundaries for what is and is not include
elena55 [62]

4. A scope statement

For example, if you are remodeling your kitchen and dining room the scope statement would say what would be done in those rooms and that NO work would be done in the rest of the house. It is an important document to make sure all parties are on the same page.

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3 years ago
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The following lots of a particular commodity were available for sale during the year: Beginning inventory 10 units at $60 First
Rus_ich [418]

Answer:

The answer is: the amount of inventory at the end of the year was $1,583 using the average cost method.

Explanation:

The average cost method calculates the cost of inventory by dividing the total costs of goods by the total units.

  • 10 units x $60 = $600
  • 25 units x $65 = $1,300
  • 30 units x $68 = $2,040
  • 15 units x $75 = $1,125

The total cost of inventory is $5,065 ($600 + $1,300 + $2,040 + $1,125)

The total units in inventory are 80 (10 + 25 + 30 +15)

To find the average cost per unit = $5,065 / 80 units = $63.31

If 25 units were left at the end of the year, then the total cost of inventory is $63.31 x 25 = $1,582,81 or $1,583

3 0
3 years ago
A salesperson earns $350.25 per week plus 12% of her weekly sales. Which of the following describes the sales necessary for the
Natali5045456 [20]
The equation for problem above is:
350.25+12/100*x=800.5
12/100*x=800.5-350.25
12/100*x=450.25
12x=45025
x=45025/12=3752.08

But the question is "at <span>least" $800.50 so the final answer is

</span>x \geq 3752.08<span>
</span>
3 0
3 years ago
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