Answer:
Value of factory = $64,220
Explanation:
Here, for the given information,
To calculate value of factory we will calculate the Net Present Value.
Net Present Value = Present value of cash inflows - Present value of cash outflow.
Present value of cash outflow = Cost of factory today = $400,000
Discounting factor @ 12% for each year shall be
Year 1 =
Year 2 =
Year 3 =
Therefore, present value of cash inflows =
Net Present Value = Value of factory = $464,220 - $400,000 = $64,220
Answer:
Here is what I found, I hope it helps
Explanation:
Gross Income contains all money you earn that is not expressly removed from taxation under the Internal Revenue Code (IRC). The part of your gross income which is currently subjected to taxes is Taxable Income. To arrive at the number of Taxable Income, expenses are deducted from gross income. For a year, your Gross Income applies to all your pre-tax earnings, while your Adjusted Gross Income is mostly smaller and refers to your income after tax deductions. I could not find the difference between Adjusted Gross Income and Taxable Income.
Answer:
So Helen can only make a deduction of $12000 from the value.
Explanation:
The amount is given as
The maximum value of phase out allowance is $25000
The value of loss reduction is calculated for the value of MAGI greater than $100,000 which is $26000 in this case thus the solution is given as
$25000-50% *$26000
=$25000-0.5*$26000
=$25000-$13000
=$12000