1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Aneli [31]
2 years ago
10

A company is evaluating a new 4-year project. The equipment necessary for the project will cost $3,250,000 and can be sold for $

645,000 at the end of the project. The asset is in the 5-year MACRS class. The depreciation percentage each year is 20.00 percent, 32.00 percent, 19.20 percent, 11.52 percent, and 11.52 percent, respectively. The company's tax rate is 35 percent. What is the aftertax salvage value of the equipment
Business
1 answer:
MissTica2 years ago
5 0

Answer: $615,810‬

Explanation:

The Book Value of the Asset at the end of 4 years will be;

= Cost of equipment - Accumulated Depreciation

= 3,250,000 - ( 3,250,000 * ( 20% + 32% + 19.20% + 11.52%))

= 3,250,000 - 2,688,400

= $561,600

The Equipment will be sold at $645,000 meaning a gain is made

= 645,000 - 561,600

= $83,400

Tax to be paid is;

= 83,400 * 0.35

= $29,190

After-tax salvage value of the equipment = Sales Price - Tax

= 645,000 - 29,190

= $615,810‬

You might be interested in
Which one of the following is least apt to help convince managers to work in the best interest of the stockholders? Threat of a
vovikov84 [41]

Answer:

Salary raises based on length of service  

Explanation:

Agency conflict occur when the owners of a firm do not manage the company. Instead, the firm is managed by mangers. As a result, the interest of the manger might not be aligned with that of the owners and as a result the manager would not act in the best interest of the owners.

Agency problem is more common in public companies

If management compensation tied to the market value of the firm's stock, it would incentivise managers to take steps that would ensure that the value of the company's stock increases. This is because they would also benefit if the value of the stock increases

A stock option plan gives managers the option of buying a company's stock if certain targets are met. This would motivate an employee to work in the best interest of the shareholders

A proxy fight and a takeover would make the managers to lose their jobs. Most managers would not want to lose their jobs. A threat of a takeover or a proxy fight can serve to motivate mangers to act in the best interest of the stockholders

7 0
3 years ago
Which statement is generally true of an investment that is highly volatile but has superior, long-term real rates of return?
Elenna [48]
Which statement is generally true of an investment that is highly volatile but has superior, long-term real rates of return?
<span>
It has low liquidity because selling would often require selling at a loss.

High volatile investments are investments that always fluctuates in the market. It can generate you very high income or very low income. It has low liquidity because when you sell it right away, you tend to sell at a loss.</span>
6 0
3 years ago
The _____ reports the financial position of a firm by identifying and reporting the value of the firm's assets, liabilities, and
Verdich [7]

Answer:

balance sheet

Explanation:

4 0
2 years ago
Most of the financial information about an organization is based on information generated from accounting records. The reports a
Bond [772]

Answer: (D)

Explanation: Reports and financial statements prepared by accountants are useful tools to evaluate an organisation's liquidity,solvency and stability. It helps the general public and other stakeholders to get the required data and information needed for decision making.

The inflationary trends shows the relationship between demand and supply in an economy which will help management to implement the necessary steps that will enhance it's operations.

The balance of trade between 2 countries provides necessary details for decision makers on when and how to improve or manage exports and imports.

8 0
2 years ago
Imagine that a certain uncle or your whom you don't often see, takes a special interest in your education and sometimes sends yo
VashaNatasha [74]

Explanation:

Dear uncle,

First of all I would like to thank you for all the attention you have given to my education, it is clear that your financial contribution has helped me a lot to achieve my academic goals, but I am proud to have in my family a person like you, who considers the education an opportunity for life and future change for me and the country.

So I come to bring you news about my college that I am sure will make you happy! In this semester I wrote a scientific article on environmental management that was highly praised by my professors and colleagues, and made me receive an invitation to present at a management and technology congress at a renowned college in the region. This topic is very relevant today and I am happy to be a disseminator of such a relevant subject.

Just as you have given me an opportunity to have a better future through studies, I will endeavor to disseminate relevant information that relates management and environmental sustainability as tools for promoting environmental responsibility in organizations, so that in the future companies will not only be profitable, be instruments that protect the environment and guarantee the quality of life of future generations.

With love,

your dear niece

6 0
2 years ago
Other questions:
  • Lone Wolf Technologies Inc. assembles circuit boards by using a manually operated machine to insert electronic components. The o
    8·1 answer
  • Privacy concerns dictate that?
    10·2 answers
  • Just as depository institutions differ from non-depository Institutions, there are also differences between the structure and ac
    10·1 answer
  • A party who agrees to act on behalf of another person or party is called a( n ) ________.
    15·1 answer
  • The classification and normal balance of the drawing account are a.expense, debit balance b.expense, credit balance c.liability,
    8·1 answer
  • SCREEN SHOT / MAX POINTS / WILL MARK BRAINLIEST Match the term to the definition. mixed economy The method a country uses to ans
    12·1 answer
  • Ace Credit Card Company agrees to transfer cash to Seller Company deposit of that company's credit card sales sales. If Seller C
    9·1 answer
  • The Japanese automobile manufacturer Mazda produces the Premacy SUV in Haikou, China at a plant it built in the Chinese province
    5·1 answer
  • Bald Eagle, Inc., had the following transactions for the year ended December 31, Year 7. Select from the options list provided t
    12·1 answer
  • Assume the union freeman works with pays newer employees less than ones who have been with the organization for a longer time. w
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!