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
Strike441 [17]
3 years ago
7

As asset used in a four-year project falls in the five-year MACRS class for tax purposes. The asset has an acquisition cost of $

6,400,000 and will be sold for $1,530,000 at the end of the project. If the tax rate is 34 percent, what is the after tax salvage value of the asset?
Business
1 answer:
Arlecino [84]3 years ago
5 0

Answer:

The after tax salvage value of the asset is $165.000.

Explanation:

If the asset has a depreciation period of 5 years it means that still there is a depreciation´s remanent of $ 1.280.000, if the asset it's sold at $1.530.000 at the end of the project, then the salvage value before taxes it's $250.000 consequently the after tax salvage value of the asset it's $ 165.000.

When company's asset it's for sale if there is yet a remanent value of depreciation it's the cost of sale of the transaction, if the depreciation it's zero then the sale it's a all gain to the company.

Please see details below:

Value of the Asset : $6.400.000

Anual Depreciation: $.1.280.000

Value of Sale:  $1.530.000

Cost of Sale : $1.280.000

Revenue : $250.000

Tax Rate:  - $85.000

Salvage value: $165.000

You might be interested in
2. What are some ways you should categorize your financial documents (choose all that apply)
drek231 [11]

Answer:

<h2><u>Credit Card Statements</u></h2><h2><u>Tax Returns </u></h2><h2><u>Bank Statements</u></h2>

Explanation:

<em>Hope this helps :)  </em>

<em>Pls make brainliest :3  </em>

<em>And have an amazing day <3</em>

4 0
2 years ago
You purchase a twenty year zero coupon bond with a yield of 5%. One year later you sell the bond at a yield of 4%. What is your
astraxan [27]

Answer:

25.94%

Explanation:

Assume, Face value of bond =$1000

Purchase price of twenty year zero coupon bond = 1000/((1+i)^N) . Where, yield = 5% =0.05 , N= number of years to maturity =20

==> Purchase Price = 1000/(1.05^20)

Purchase Price = 1000/2.65329770514

Purchase Price = $376.89

Selling Price after one year:  1000/(1+I)^19. Where i=yield=4%=0.04, N=19

Selling Price=1000/(1.04^19)

Selling Price = 1000/2.10684917599

Selling Price = $474.64

Rate of Return = (474.64/376.89) - 1

Rate of Return = 1.25935949481281 - 1

Rate of Return = 0.2594

Rate of Return = 25.94%

7 0
2 years ago
The preferred debt-to-income ratio is usually: A. 28 percent B. 36 percent C. 40 percent D. 50 percent
krek1111 [17]

the preferred debt to income ratio is usually B 36%

4 0
2 years ago
Zoom In, Inc. is engaged in the business of coding, with an emphasis on Internet marketing, business apps, and intra-corporate n
-BARSIC- [3]

Answer:

Option A. The U.S. Constitution.

Explanation:

The reason is that the US constitution provides the basic framework for the laws to be formulated and passed both in the US National Assembly and the Senate. The laws cannot be formulated if the US constitution doesn't allows the passing of the law which means that the constitution must be amended first. When the slavery was to be eliminated in 1865, the first problem was that passing the elimination of slavery law was inconflict with the US constitution. So the constitution was amended before passing the law to eliminate the conflict.

In the nutshell, every law originates because of different reasons like Technological reasons, Social reasons, Cultural reason, etc) but the basis remains the same which is US constitution which is the basic framework for passing the law.

8 0
2 years ago
Let's think about billions by looking at Bill Gates, president of Microsoft. One year, his personal wealth grew by $20 billion.
marta [7]

Answer:

No, he should <u>not</u> pick up the $100 bill

Explanation:

If his salary were those $20 billion (20,000,000,000) by a year. Let's find out how much this is by a second.

First let's find out how much is that salary by <em>a day</em>, then by <em>an hour</em>, then by <em>a minute</em> and finally by <em>a second</em>.

\frac{20,000,000,000}{year}*(\frac{1 year}{365d})*(\frac{1d}{24h})*(\frac{1}{60min} )*(\frac{1min}{60s} )  \\\\  =\frac{20,000,000,000}{365*24*60*60} \\ \\ =\frac{20,000,000,000}{31,536,000} \\ \\ =634.19

So he would be losing money if he picks up the $100 bill, because he would be missing 634 dollars per second.

6 0
2 years ago
Other questions:
  • The annual output and prices of a 3-good economy are shown in the table below. instructions: enter your answers as whole numbers
    13·1 answer
  • Gerry, one of your subordinates, seems to care so much about being liked that he rarely states strong opinions in meetings of yo
    12·1 answer
  • Read the following stock quote. Did the stock price increase or decrease?
    6·2 answers
  • Janelle Heinke, the owner of Ha'Peppas!, is considering a new oven in which to bake the firm's signature dish, vegetarian pizza.
    8·1 answer
  • Small lean mean agencies which operate on low overheads and do quality work by hiring experts on job basis are called - Options
    6·1 answer
  • Pete is a recent finance graduate who has two passions: music and finance. Upon graduation, he was offered an opportunity to joi
    10·1 answer
  • Happy Helpers Maid Service is calculating its standard direct labor rate. The direct labor rate is $19 per hour. Happy Helpers i
    6·1 answer
  • Prepare journal entries to record each of the following transactions. The company records purchases using the gross method and a
    7·1 answer
  • Pilet Pte Ltd balance sheet reflected assets of 10,000, liabilities of 5,000 and share capital of 2,000 as of December 31,2009.
    15·1 answer
  • Group of answer choicesThe horizon value is calculated by discounting the free cash flows beyond the horizon date and any tax sa
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!