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Ket [755]
3 years ago
11

Diego Inc. wants to replace a 7-year-old machine with a new machine that is more efficient. The old machine cost $50,000 when ne

w and has a current book value of $12,000. Diego can sell the machine to a foreign buyer for $14,000. Diego's tax rate is 25%. What is the cash inflow that should be recorded for the initial year regarding this transaction?
Business
1 answer:
Alja [10]3 years ago
6 0

Answer:$10,500

Explanation:

The only cash inflow is the $14,000 from the sale of machinery less the 25% tax rate.

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Concierge Industries manufactures 40,000 components per year. The manufacturing cost of the components was determined as follows
Law Incorporation [45]

Answer:

b. $165,000 decrease

Explanation:

The total cost per year if Concierge Industries purchase the component outside is $510,000 (= $12.75 x 40,000 components per year)

But Concierge Industries can rent its unused manufacturing facilities for $45,000 if it purchases the component from the outside supplier  

So the income/ loss if Concierge purchases the component from the outside supplier  

=  saving of manufacturing cost $300,000 + rental of $45,000 - $510,000 cost paid to outside supplier  

= ($165,000)

6 0
3 years ago
During 20X1, the Balboa Software Company incurred development costs of $2,000,000 related to a new software project. Of this amo
sergey [27]

Answer:

$400,000

Explanation:

Data provided in the question:  

Development cost incurred = $2,000,000  

Amount incurred after the technological feasibility was achieved = $400,000

Now,  

The Software development costs that would be capitalized in 20X1

= Cost incurred after achievement of technological feasibility    

= $400,000  

3 0
3 years ago
Fill in the gaps using second conditional. /2
zavuch27 [327]

Answer:

knew

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6 0
3 years ago
If the poverty threshold for a family of four with two children was $18,850 in 2004, which family would be counted as poverty-st
vova2212 [387]

If the poverty threshold for a family of four with two children was $18,850 in 2004, then a family earning a total household income of $354 per week would be counted as poverty-stricken because the family would only get $18,408 per year and that is less than $18,850.

5 0
3 years ago
Golden has a receivable due in 30 days for 30,000 euros. The treasurer is concerned that the value of the euro relative to the d
attashe74 [19]

Answer:

The answer is c. Enter into a forward contract to sell 30,000 euros in 30 days

Explanation:

The risk Golden is facing is the exchange rate risk. Specially, as of the firm's concern, 30,00 euros they will receive in 30 days will not be worth as much as it is now because the Euro is expected to be depreciated against the firm's domestic currency.

So, they may enter into a forward contract allowing them to sell 30,000 euros in 30 days ( take short position in Euro) at pre-determined exchange rate. By doing so, they effectively eliminate the exchange rate risk by lock-in the exchange rate at the day they receive 30,000 euro.

8 0
3 years ago
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