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harkovskaia [24]
3 years ago
13

A Corporate taxes = (revenue – expenses) x corporate tax rate – tax credits. A firm’s tax rate is 30% and it can deduct any new

investment from its expenses immediately. Its new investment is worth $100,000, which saves the company $X in taxes owed. What is X? Would the firm rather have a tax credit worth $40,000?
Business
1 answer:
Ray Of Light [21]3 years ago
5 0

Answer:

$30,000 and yes

Explanation:

Data provided in the question

Tax rate = 30%

Worth of investment = $100,000

Tax credit worth = $40,000

Based on the above information, the value of X is

= Worth of investment × tax rate

= $100,000 × 30%

= $30,000

As the X value is $30,000 and the tax credit worth is $40,000 which is more than the tax save value so in this case the firm should rather have  a tax credit worth $40,000 as it contains high amount than taxed value i.e $30,000

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Mary traded furniture used in her business to a furniture dealer for some new furniture. Mary originally purchased the furniture
likoan [24]

Answer:

$24,000

Explanation:

From the time an asset is acquired until the time it is sold, an asset experiences a number of events which causes an increase or decrease of its total value. Th adjusted basis of a given asset, takes the base price of an asset and adjusts it for changes in value reflecting enhancements and or depreciation. For instance, a given asset purchased for $100, depreciates by $10 and has an improvement of $60 would have an adjusted basis of $100 - $10 + $60 = $150.

Now when Mary bought her furniture, the adjusted basis was $20,000. At the time of exchange, the fair market value of the furniture is $4,000 whereas Mary also gave $4,000 to the dealer in the transaction. This $4,000 changes the value ans is added to the previous adjusted basis of $20,000.

Mary's adjusted basis in the new furniture after the exchange is:

= $4,000 + $20,000

= $24,000

8 0
3 years ago
Elegance Inc. is a large cosmetics company that made an initial small investment in a start-up company, Peace Planet, which was
mr Goodwill [35]

Answer:

B. real-options perspective.

Explanation:

Based on the scenario being described within the question it can be said that this approach to strategic alliance is referred to as a real-options perspective. This perspective refers to the ability of an individual or company to have the freedom to choose between logical financial options in capital investments in order to try and make the best choices and decisions. Which is what Elegance Inc. did when they saw that the company they were supporting was most likely to fail due to their unforeseen problem.

7 0
3 years ago
Will supply curve have the same exact shape in all market? if not, how will the differ?
Licemer1 [7]

Answer:

At the markets eqilibirium , the quantity demand and the quantity supplied will be equal.If there is a shortage, the quantity demand will be larger than the quantity supplied. If there  is a surplus , the quantity demand will be smaller than the quantity supplied.

Explanation:

4 0
3 years ago
An example of factory overhead is (electricity used to run assembly line, CEO salary). electricity used to run assembly line
mafiozo [28]

Answer:

b

Explanation:

8 0
3 years ago
Read 2 more answers
Suppose that Techno TV produces LCD televisions. At a price of $2,000 per television, Techno determines that its optimal output
prohojiy [21]

Answer: The answer is b. Reduce output in the short run.

Explanation: In production, to determine the quantity of products to supply, the demand of the consumer plays a very vital role. This is because the consumer demand will determine the price at which a company will sell its products.

In the case of Techno above, they would do well to reduce the output in the short run, since demand has reduced, pending when the demand increases. This is because if they maintain their current output of 3000 TV sets per week, they will sell less units and their revenue (price x quantity sold) will be lower than their cost and this will lead to them incurring loss.

So until the recession scare passes, output should be reduced in the short run.

3 0
3 years ago
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