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Ivahew [28]
4 years ago
10

A two-year project has sales of $582,960, cash costs of $411,015, and depreciation expense of $68,109. The tax rate is 24 percen

t and the discount rate is 12 percent. What amount should be used as the annual depreciation tax shield when computing the project's operating cash flow? Ignore bonus depreciation. C) $47,213.34 D) $26,210.01 E) $46,676.30 B) $16,346.16 A) $23,606.67
Business
1 answer:
stepladder [879]4 years ago
5 0

Answer:

B) $16,346.16

Explanation:

annual operating tax shield = depreciation expense x tax rate = $68,109 x 24% = $16,346.16

when you are calculating the net cash flows, the formula you will follow is:

net cash flow = [(revenues - cash costs - depreciation expense) x (1 - tax rate)] + depreciation expense

net cash flow =  [($582,960 - $411,015 - $68,109) x (1 - 24%)] + $68,109 = $147,024.36

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Signal mistakenly produced 1,000 defective cell phones. The phones cost $65 each to produce. A salvage company will buy the defe
Contact [7]

Answer:

It is more profitable to continue to rework the phones and sell them.

Explanation:

Giving the following information:

Signal mistakenly produced 1,000 defective cell phones.

<u>The $65 per phone is a sunk cost. It will remain on both decisions, therefore, we will not take into account to make the decision.</u>

Sell as it is:

Income= 33*1,000= $33,000

Rework:

Costs= 88*1,000= $88,000

Sales= 144*1,000= $144,000

Total gain= $56,000

It is more profitable to continue to rework the phones and sell them.

3 0
3 years ago
Carson Company purchased a depreciable asset for $560,000. The estimated salvage value is $28,000, and the estimated useful life
LenaWriter [7]

Answer:

$79,800

Explanation:

Depreciation expense using the activity method = (actual hours of use in a given period / total estimated hours of use ) × ( Cost of asset - Salvage value)

(1500/10,000) × ($560,000 - $28,000) = $79,800

I hope my answer helps you.

5 0
3 years ago
The total factory overhead for Magnum Corporation is budgeted for the year at $500,000. This is divided into three activity pool
tatuchka [14]

Answer:

The ABC overhead for a Deluxe kayak will be $170.93

Explanation:

\frac{Cost\: Of \:Manufacturing \:Overhead}{Cost \:Driver}= Overhead \:Rate

We are going to divide the overhead cost over the cost driver of each activity.

\left[\begin{array}{cccc}-&Overhead&Total&Rate\\fabric&246,000&10,000&24.6\\assembly&144,000&32,000&4.5\\setup&110,000&15&7,333.33\\\end{array}\right]

Now we apply the rate to Deluxe Kayak:

\left[\begin{array}{cccc}-&Rate&Deluxe&Overhead\\fabric&24.6&10,000&246,000\\assembly&4.5&24,000&108,000\\setup&7,333.33&10&73,333.33\\Total&-&-&427,333.33\\\end{array}\right]

Finally we divide the overhead for Deluxe between the units produced

427,333.33/ 2,500 = 170.933 = 170.93

3 0
3 years ago
You are conducting a study to determine if a relationship exists between personality and being a successful Reality TV character
tia_tia [17]

Answer:

The correct answer is letter "D": group's altercations and group's celebrations.

Explanation:

The unit of context represents the samples that are going to be taken into consideration for research. According to those samples, it will be possible to conduct a study about a specific topic of interest for the researcher that he or she would like to expose.

In that case, analyzing the TV show characters during the group's altercations and group celebrations will allow the researcher to conduct the study.

3 0
3 years ago
Do you believe the statement "perception is reality"? Why or why not?
Allisa [31]
I wholeheartedly agree and think it’s practically self-evident.

Here’s an excellent example from history.

For 28 years, the Berlin Wall separated East Berlin from West Berlin and was the most heavily militarized border crossing in the Western hemisphere. In 1989, during a press conference with western media, Gunther Schabowski was handed a note explaining a change in policy governing border crossing. Several discussions took place about making a show of opening the border between East and West Germany, but nobody informed Schabowski.

At the end of the press conference, he appears to have remembered the note belatedly, and read it verbatim—which was not what was intended. When asked about when the border would open, he assumed it was immediate.

The reality of course was that East Germany had no intention of opening the border, and certainly not immediately.

Within hours, the border crossing was practically buried under thousands of East Germans eager to be reunited with their families and other loved ones after 28 years on the press conference, which had been broadcast live.

The East Germans believed what they were told: Schabowski said immediately, and they intended to go immediately.

Border guards kept calling for instructions, until finally, they relented.

Perception became reality, and the border between East and West Berlin opened, spelling the de facto end of the separation of Germany.
273 viewsView 2 Upvoters · Answer requested by Never Wong
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