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
tino4ka555 [31]
3 years ago
14

Canyon Buff Corp. is considering the purchase of a new piece of equipment which would cost $11,000. This equipment will have a f

ive-year useful life and have a salvage value of $1,000 at the end of the five-year period. The marginal tax rate is 30% and the average tax rate is 20%. Assume a straight-line depreciation, the net effect of annual depreciation on the free cash flow is $_____ in each of the 5 years.
Business
1 answer:
Furkat [3]3 years ago
5 0

Answer:

Tax shield on depreciation = 600

Explanation:

given data

new piece of equipment = $11,000

salvage value = $1,000

marginal tax rate = 30%

average tax rate = 20%

time period = 5 year

to find out

net effect of annual depreciation on the free cash flow

solution

we know here cost of asset and  Salvage value so we get depreciation cost  

depreciation cost is = 11000 - 1000 = 10000  

and

annual depreciation = 2000  

so that Tax shield on depreciation will be

Tax shield on depreciation = 2000 × 30%

Tax shield on depreciation = 600

You might be interested in
Albert and Alberta love the University of Florida and want to support the school in every way. They always like to drink Gatorad
skelet666 [1.2K]

Answer:

A. Loyalty

Explanation:

Brand Equity is the term used to describe the identity of a specific brand that has been built to be recognized and followed by its customers with loyalty.

Loyalty related to Brand Equity is the main factor in placing product quality and image as one of the company's marketing strategies. This is because it makes the consumer "fall in love" with the product offered, refusing to exchange it for similar ones, but who do not have the same identity. An example of this can be seen in the question above, where Albert and Alberta refuse to stay at a gym that does not offer their favorite drink. Because of this, they prefer to leave this gym and look for one that provides the drink they want.

7 0
3 years ago
Read 2 more answers
Amanda's Interior Design has credit sales of $783,000, costs of goods sold of $418,000, and average accounts receivable of $107,
posledela

Answer:

The 50.30 days are required to take its credit customers to pay for their purchases.

Explanation:

For computing the average collection period, we have to use the formula of the average collection period.

Average collection period = Average accounts receivable ÷ Credit sales × total number of days in a year

= $107,900 ÷ $783,000 × 365

= 0.13780 × 365

= 50.30 days

We assume 365 days in a year

The cost of goods sold is irrelevant. Thus, it is not considered in the computation part.

Hence, 50.30 days are required to take its credit customers to pay for their purchases.

5 0
3 years ago
A customer comes into your shop carrying a gorgeous oval bowl. It’s very large and low, and has a pale gray crackled glaze. He t
ivann1987 [24]
<span>To keep the tulips from bending as they often do, you tie them with raffia, a technique known as B. skeletonizing

This type of technique helps the flowers be tied together. The raffia is used like a skeleton for the flowers to stand straight. It supports the tulips, preventing them from bending. </span>
8 0
3 years ago
Read 2 more answers
Higher nominal interest rates ______ the amount of money demanded and higher real income ______ the amount of money demanded.
Ulleksa [173]

Answer:

decreases

increases

Explanation:

Nominal interest rate is real interest rate plus inflation rate. If nominal interest rate rises, people would prefer to save their money and so the demand for money would fall.

Real income is income adjusted for price level changes. The higher the real income,the higher the purchasing power, the higher the demand for money.

3 0
3 years ago
The next model of a sports car will cost 12.6% less than the current model. the current model costs $31,000 . how much will the
Kaylis [27]
Thirty thousand six hundred and nine
6 0
3 years ago
Other questions:
  • Karen Price has determined that her net worth is $56,000, excluding her home. She owes $80,000 on her mortgage and $13,000 on a
    11·1 answer
  • Borden Inc. offers pasta snacks grocery and dairy items as well as films adhesives another nonfood products these products are r
    11·1 answer
  • By what food contamination caused by pathogens on a food handler body can be controlled by good personal hygiene, time-temperatu
    8·2 answers
  • The _____ serves as the jfc's principal organization to draft the commander's information dissemination policy and coordinates i
    13·1 answer
  • If the total unit cost of manufacturing Product Y is currently $36 and the total unit cost after modifying the style is estimate
    15·1 answer
  • Which cell address indicates the intersection of the first row and the first column in a worksheet?
    9·2 answers
  • ​Connecticut, Inc. uses the indirect method to prepare its statement of cash flows. Refer to the following portion of the compar
    5·1 answer
  • I really need help with this weustion :_:
    5·2 answers
  • Write any four advantages of living in a community<br><br>​
    8·1 answer
  • revenue prediction for integrated renewable energy and energy storage system using machine learning techniques""
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!