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Troyanec [42]
3 years ago
14

A consumer electronics company was formed to develop cell phones that run on or are recharged by fuel cells. The company purchas

ed a warehouse and converted it into a manufacturing plant for $6,000,000. It completed installation of assembly equipment worth $1,500,000 on December 31. The plant began operation on January 1. The company had a gross income of $8,500,000 for the calendar year. Manufacturing costs and all operating expenses, excluding the capital expenditures, were $2,280,000. The depreciation expenses for capital expenditures amounted to $456,000. a) Compute the taxable income of this company. b) How much will the company pay in federal income taxes for the year?
Business
1 answer:
rodikova [14]3 years ago
8 0

Answer:

a) $5, 764,000

b) $1, 959,000

Explanation:

The first part of the question is to determine the taxable income of the company

The taxable income - The company's gross income - The Capital Expenditures - The Depreciation expenses for capital expenditure

= $8,500,000 - $2,280,000 - $456,000

= $5,764,000

Part B) This is to determine the Federal Income Taxes for the year

Looking at the income tax distribution tab, we first check where the company falls into

Since, the company has a taxable income of $5,764,000, it falls in the category of

$335,000 to $10,000,000= $113,900 + 34% of the amount over $335,000

As such, the Federal Income Tax

= $113,900 + ($5,764,000- $335,000) x 34%

= $113,900 + $1, 845,000

= $1, 959,000

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Explanation:

The Expected Return on an investment can be calculated using the Dividend Discount Model as it is a key component in thw formula which is,

P = D1 / r - g

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P is the current stock price

g is the growth rate

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With the given figures we have,

84 = 4.20 / r - 0.08

84 ( r - 0.08) = 4.20

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r = 0.13

The Expected Return can be slotted into the CAPM formula to find the beta.

The CAPM formula calculates the Expected Return in the following manner,

Er = Rf + b( Rm - rF)

Where,

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Slotting in the figures gives,

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Using the constant-growth DDM and the CAPM, the beta of the stock is 0.9

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Trisha makes purses out of old blue jeans and sells them to customers at local craft fairs. what type of marketing channel does
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A company estimates that the revenue (in dollars) from the sale of x doghouses is given by R(x)=14,000ln(0.01x+1). Use the diffe
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Explanation: Differential is a function that can be used to approximate function value with a great degree of accuracy. This is done by the following.

Mathematical definition of derivative: f'(x) = lim f(x+Δx) - f(x)/Δx.

If Δx is very small:

f'(x) . Δx ≅ f(x+Δx) - f(x)

Knowing that Δy ≅ f(x+Δx) - f(x) and the diferential of variable x can be written by dx as the variable y can be dy:

dy = f'(x) dx

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For the question, R(x) = y(x) = 14,000ln(0.01x+1)

f'(x) = \frac{d[14,000.ln(0.01x+1)]}{dx}

Using the chain rule, the derivative will be:

f'(x) = 14,000.\frac{0.01}{0.01x+1}

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dx is the change in x. For the question, the change is 1 (1 more doghouse) and x is 110:

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Listening skills are important for career success and organizational effectiveness. Considered one of the soft skills, listening
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Answer:

Identify the key facts in the message.

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For example, if you're having trouble focusing on a message, you could identify the key facts contained in that message.

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