Answer:
the cost to be assigned to the building is $288,000
Explanation:
The Costs of Land, Building and Equipment have to be determined separately due to the fact that their usage is different and hence depreciation charges are different.
The Appraisal value is used to apportion the cost of $450,000 to the Land, Building and Equipment as follows :
PPE Item Appraised Value
Land $100,000
Building $320,000
Equipment $80,000
Total $500,000
Apportionment of Cost to Building :
Building = $320,000/ $500,000× $450,000
= $288,000
Answer:
= $1,520,000
Explanation:
The question is to determine the company's tax shield
A tax shield represents allowable deductions that individuals or organisations are allowed to claim in order to reduce their taxable income. The effect of the tax shield is either to reduce the current year's taxable income or allow for deference of income taxes to a later year.
The tax shield of the firm is as follows
Tax shield = Value of the company's debt x The interest rate x the tax rate
= $38,000,000 x 10% x 40%
= $1,520,000
Keep track, and save ahead of time to complete your bills in time, or if your young get a gas card or kohls cards, and pay the bill immediately. ~SUGGESTION
Companies that outsource face certain risks when they hire other organizations to perform certain services. a particular risk a company might face is that there is no easy way of exiting the outsourcing agreement.
An organization is a group of people working together, such as a neighborhood association, charity, union, or business. The word organization can be used to refer to a group or enterprise or the act of forming or establishing something.
An organization is an official group of people such as a political party, corporation, charity or association. Most of these vocational schools are provided by volunteer organizations. ... Reported by the International Labor Organization. Synonyms: Synonyms for groups, companies, associations, associations, and organizations.
Learn more about organizations here:brainly.com/question/19334871
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