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
LuckyWell [14K]
3 years ago
8

You are given the following information for Ted’s Dread Co.: sales = $82,000; costs = $57,700; addition to retained earnings = $

7,500; dividends paid = $3,320; interest expense = $3,030; tax rate = 25 percent. Calculate the depreciation expense for the company.
Business
1 answer:
vazorg [7]3 years ago
4 0

Answer:$6,843.33=Depreciation

Explanation:

To Calculate the depreciation expense for the company

Net income = Dividends + Addition to retained earnings

Net income = $3,320 + 7,500

Net income = $10,820

Also,

Net income = Taxable income - (Taxable income)(Tax rate)

Net income = Taxable income(1 - Tax rate)

Therefore,

Taxable income = Net income / (1 - Tax rate)

Taxable income = $10,820 / (1 - 0.25

Taxable income = $10,820/0.75 =14,426.67

But

EBIT -interest = taxable income,So

EBIT = Taxable income + Interest

EBIT = $14,426.67+3,030

EBIT = 17,456.67

EBIT = Sales - Costs - Depreciation

$17,456.67 = $82000 - 57,700 - Depreciation

$17,456.67= 24,300-Deprecistion

Depreciation =24,300-17456.67 =

$6,843.33

You might be interested in
On September 1, 2021, Middleton Corp. lends cash and accepts a $4,000 note receivable that offers 10% interest and is due in six
iris [78.8K]

Answer:

Middleton Corp. will report interest revenue of 133.33 for the period of 2021.

Explanation:

The adjusting entry for the interest receivable for the period ended 31 december will require the Middleton Corp. to record the 4 months interest as interest revenue for the period ended 2021.

The interest on the note for this period is ending 2021 is,

Interest revenue = 4000 * 0.1 * 4/12 = 133.33

The entry on 31 December will be

Interest receivable    133.33 Dr

   Interest Revenue       133.33 Cr

8 0
3 years ago
Read 2 more answers
A commercial oven with a book value of $67,000 has an estimated remaining 5 year life. A proposal is offered to sell the oven fo
GaryK [48]

Answer:

It should replace the equipment

Explanation:

                                         continue replace Differential

Proceeds from sale             -              8,500            8,500

Cost  

purchase                                -           -110,000        -110,000

cost savings (5 years)                           115,000         115,000

Total cost                                 -               5,000           5,000

 

Net                                                    -     13,500          13,500

3 0
2 years ago
Blue Sky Company’s 12/31 balance sheet reports assets of $65,893 and liabilities of $28,686. All of Blue Sky’s assets’ book valu
padilas [110]

Answer:

Goodwill is $ 50,166.00  

Explanation:

Goodwill is the excess of purchase price consideration over the fair value of net assets of the business acquired.

Purchase price consideration is the proceeds received by the owners of the business acquired in a business combination arrangement like this.

The net assets is the fair value of assets minus the fair value of the liabilities.

Purchase price consideration is $97,109

Net assets =$65,893+$9,736-$28,686=$ 46,943.00  

Goodwill=$97,109-$46,943.00  =$ 50,166.00  

3 0
3 years ago
To an economist, an increase in demand means the same thing as an increase in quantity demanded.
Morgarella [4.7K]
<span>This is false. An increase in demand is more major than an increase in quantity demanded. Quantity demand refers to the demand of a product at a particular price and is only a movement on the demand curve. An increase in demand would cause the demand curve to shift which is more major than a movement and it encompasses the entire relationship between price and demand.</span>
7 0
3 years ago
One approach to understanding corruption perceptions is to compare information across a variety of countries. Your company has h
Ne4ueva [31]

Explanation:

A  major problem in investing in the countries of South America are the problems arising from corruption, political instability and bureaucratization.

There are also many positive points that make large companies operate in such countries, such as Brazil, for example, which is a large country with enormous potential for consumption and also local and government incentives for setting international companies in the country.

However, it is essential that companies operate in these countries having knowledge of the real local situation in terms of the main problems occurring in the country, such as corruption, which can lead to significant problems for the company's business.

It is important, therefore, that there is an accurate internal control over the businesses and the corruption-related indexes and an active and regular monitoring of data essential to the business.

It is also important to have policies and an internal culture aimed at maintaining ethical values, so that the company is supported by positive and ethical values ​​that will lead to a good positioning in the market.

4 0
3 years ago
Other questions:
  • HURRY HURRY!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
    5·1 answer
  • Which of the following are main responsibilites employers have under OSHA's standards?
    7·1 answer
  • To discourage competitive entry, a company can price its new product low, using penetration pricing. This pricing strategy also
    10·1 answer
  • Denise Company manufactures three products from a joint process. Joint costs for the year amounted to​ $250,000. The following d
    14·1 answer
  • The mayor of Lexington, Kentucky, held a press conference to comment on some changes to a local ordinance and explain how it wou
    13·1 answer
  • The recommended length of a mission statement is fewer than​ _____ words. A. 75 B. 100 C. 25 D. 500 E. 300
    6·1 answer
  • The first two closing entries to the Income Summary account indicate a debit of $57,750 and a credit of $69,700. The third closi
    13·1 answer
  • There is no such thing as "the law" in that law comes from many different sources.
    7·1 answer
  • Conrad, Inc. recently lost a portion of its records in an office fire. The following information was salvaged from the accountin
    5·1 answer
  • What is the first thing a lender might do if a borrower is late with a payment?
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!