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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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Match the following statements to the appropriate terms.
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Answer:

Matching Statements to Appropriate Terms:

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Explanation:

Profitability Ratios are one of the classes of financial metrics that measure a business's ability to generate earnings relative to its revenue, operating costs, assets, or shareholders' equity during a period of time.

Liquidity Ratios measure the ability of the company to pay its maturing short-term debt obligations from its current assets.  They include the working capital, the current ratio, and the acid-test ratio.

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