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You purchased a machine for $ 1.19 million three years ago and have been applying straight-line depreciation to zero for a sev

sp2606 [1]

Answer:

$748,820

Explanation:

The computation of the incremental cash flow is shown below:

As we know that

Incremental cash flow = Sale price - (sale price - book value) × tax rate

where,

Sale price is $791,000

The book value is

= Purchase value - accumulated depreciation

= $1,190,000 - $1,190,000 ÷ 7 years × 3 years

= $1,190,000 - $510,000

= $680,000

So, the incremental cash flow is

= $791,000 - ($791,000 - $680,000) × 38%

= $791,000 - $42,180

= $748,820

We simply applied the above formula

4 0

3 years ago

Sanders, a 62-year-old single individual, sold his principal residence for the net amount of $500,000 after all selling expenses

grin007 [14]

Answer:

$50,000

Explanation:

Recognized gain can be calculated by deducting the exclusion available from the realized gain. To qualify for exclusion from the realized gain Sanders has met all the requirements of exclusion.

NOTE: Requirments for exclusion are given at the end of solution

DATA

Sale proceeds = $500,000

Cost basis = $200,000

exclusion available for single person = $250,000

Gain =?

Calculation

Realized gain on sale of home = Sale proceeds – Cost basis

Realized gain on sale of home = $500,000 - $200,000

Realized gain on sale of home = $300,000

Recognized gain = Realized gain - exclusion available

Recognized gain = $300,000 - $250,000

Recognized gain = $50,000

Requirements for exclusion

1. You've owned the home for two of the last five years.

2. You used the home as your principal residence for two of the last five years.

3. You haven't used the exclusion on another property sale within the last two years.

5 0

3 years ago

Hennessey Chicken and Waffles had $594,500 in sales, and a net profit margin of 4 percent. The firm has 2,750 shares of stock ou

lord [1]

The price-earnings ratio for Hennessey Chicken and Waffles would be 4.90

<h3>What is price-earning ratio(PE)?</h3>

PE ratio is known as the price per earnings ratio. It is the ratio of share price of a company to its earnings per share. The higher the PE ratio, the higher the prospects of higher future performance.

The Price/Earnings Ratio (P/E Ratio) can be calculated as:

= Market Value / Earnings per Share.

First, we need to calculate the net income

Net Income

= Sales x profit margin

= 594500 * 4%

= $23,780

Earnings per share

= (Net profits after taxes – Preferred dividends) / Number of shares of common stock outstanding

= ($23,780 - 0) / 2,750

= $8.65

Therefore,

P/E ratio :

= Market Value / Earnings per Share.

= $42.40 / $8.65

= 4.90

Hence, the price-earnings ratio would be : 4.90

Learn more about price-earnings ratio here: brainly.com/question/18802904

5 0

3 years ago

______ is a process in which one party perceives that its interests are being opposed or negatively affected by another party.

OLEGan [10]

Answer: Conflict.

Explanation:

A conflict is a clash of interest between two or more parties on serious matter being deliberated on. Conflicts can be: racial, religious, political, tribal etc. In most cases the solution to a conflict is dialogue.

4 0

4 years ago

Venezuelans organize to overcome food shortages The government of Venezuela controls the price of food and there are shortages o

lubasha [3.4K]

Answer: Option A

Explanation: The control described in the case is <em>Price Ceilings. </em>Price ceiling is a method used by the government to control the price of certain commodities and to protect the consumer from overpricing of necessary goods.

Under price ceiling method, government fix the price of the commodity below the equilibrium price leading to demand exceeding supply which further results in shortage.

In the given case, shortage is clearly evident hence we can say the control is price ceiling.

5 0

4 years ago