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Svet_ta [14]
3 years ago
6

Last year Almazan Software reported $10.500 million of sales, $6.250 million of operating costs other than depreciation, and $1.

300 million of depreciation. The company had $5.000 million of bonds that carry a 6.5% interest rate, and its federal-plus-state income tax rate was 25%. This year's data are expected to remain unchanged except for one item, depreciation, which is expected to increase by $0.670 million. By how much will net income change as a result of the change in depreciation? The company uses the same depreciation calculations for tax and stockholder reporting purposes. (Round your final answer to 3 decimal places.)
Business
1 answer:
castortr0y [4]3 years ago
8 0

Answer:  -($0.5025) million

Explanation:

As depreciation is expected to increase this year by $0.670 million.

Therefore,

Expenses will increase and will result in decrease in income before tax by $0.670 million.

Additional tax saving on increase in depreciation = $0.67 × 25%

                                                                                   = $0.1675 million

Hence,

Total change in net income = -($0.67) + $0.1675

                                              = -($0.5025) million

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nataly862011 [7]

Answer:

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Explanation:

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to find out

the Merchandise Inventory will be

solution

we know here market  is equal to current replacement cost that is $9

and here we can say

market is here less than cost

so inventory will be valued at Market

so we find

down in inventory is = 800 × ( 13 - 9 )

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5 0
3 years ago
benjamin company has the following results of operations for the pat tyear. A foreign company (whose sales will not affect Benja
maks197457 [2]

Answer:

Increase by $5,975

Explanation:

Calculation to determine the profit

First step is to calculate the Direct Material and Direct labor per unit

Direct Material and Direct labor per unit=$100,000/16,000

Direct Material and Direct labor per unit=$6.25

Second step is to calculate the Relevant Variable Overhead

Relevant Variable Overhead = 20,000 * 20%

Relevant Variable Overhead= $4,000

Third step is to calculate the

Relevant Variable Cost per unit = $4,000 / 16,000

Relevant Variable Cost per unit= $0.25

Fourth step is to calculate the Total Relevant Variable cost per unit

Total Relevant Variable cost per unit = $6.25 + $0.25

Total Relevant Variable cost per unit= $6.5

Fifth step is to calculate the Relevant Contribution Margin per unit

Relevant Contribution Margin per unit = $8.05 - $6.5

Relevant Contribution Margin per unit= $1.55

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Total Contribution = 4,500 * $1.55

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Now let calculate the profit using this formula

Profit = Contribution - Fixed Cost

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Profit = $6,975 - $650 - $350

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bonufazy [111]

I think the answer is D

6 0
3 years ago
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Lorico [155]

Answer:

B. $300,000

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