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aev [14]
3 years ago
13

"Eastern Corporation has $21,000,000 in equipment that has a 15 year class life. The equipment is 8 years old. Eastern is sellin

g the equipment for $10,000,000. Eastern uses simplified straight line depreciation (zero salvage value) and has a marginal tax rate of 34%. What is the terminal cash flow? Assume no working capital."
Business
1 answer:
Alex787 [66]3 years ago
3 0

Answer:

terminal cash flow $932,000

Explanation:

21,000,000/15 = 1,400,000

1,400,000 x 8 = 11,200,000

<u>Net Book Value:</u> 21,000,000 - 11,200,000 = 9,800,000

Sale                                                                10,000,000

Gain                                                                   200,000

<u>We must pay taxes for the gain:</u>

200,000 x .34 = 68,000

<u>terminal cash flow:</u> proceeds - taxes = 10,000,000 - 68,000 = 932,000

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Of the four steps in the army pr system, which step encompasses the activities of developing guidance for, providing appropriate
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<span>This is the execution step. The five PR execution steps are Report, Locate, Support, Recover, and Reintegrate. The Report step involves reporting events. The Locate step involves locating efforts, beginning with the initial report and continuing until recovery is complete. The Support step is about giving support to IMDC personnel. The Recovery task ends after the IMDC personnel are handed over to the medical personnel for reintegration. Reintegration ends when a person is returned to duty with no further care needed.</span>
4 0
3 years ago
Dynamo Corporation manufactures toasters. Each toaster comes with a 5-year assurance-type warranty. The toasters sell for $50 ea
Leno4ka [110]

Answer:

1.Dr Cash 25,000

Cr Sales revenue 25,000

2. Dr Warranty expense 2,500

Cr Warranty liability 2,500

3.Journal entry for actual warranty expense

Dr Warranty liability 500

Cr Cash 500

Explanation:

Preparation of Dynamo's journal entries related to the sales and warranty in Year 1.

1.Dr Cash 25,000

Cr Sales revenue 25,000

(50*500)

2. Dr Warranty expense 2,500

Cr Warranty liability 2,500

3. Dr Warranty liability 500

Cr Cash 500

7 0
3 years ago
The present national accounting system does not reflect changes in:
Rama09 [41]
Umm I'd have to say c or d
7 0
3 years ago
Frankie's Chocolate Co. reports the following information from its sales budget: Expected Sales: July $ 90,000 August 110,000 Se
Cerrena [4.2K]

Answer:

$112,500

Explanation:

                                                 July       August         September  October

Credit Sales(90000*75%)       67,500  

                   (110,000*75%)                       82,500

                   (120,000*75%)                                          90,000

Cash Sales (120,000*25%                                            30,000

<em>Total Cash expected to be collected in September will be;</em>

Credit Sales of August      $82,500

Cash  Sales of September $30,000

Total cash expected to be collected in September =$112,500

4 0
3 years ago
Read 2 more answers
Actual fixed overhead is $33,300 (12,000 machine hours) and fixed overhead was estimated at $34,000 when the predetermined rate
Anuta_ua [19.1K]

Answer:

C. $34,500

Explanation:

Given the above information, applied fixed overhead is computed as;

= Standard hours allowed for actual production × Predetermined rate

Standard hours allowed for actual production = 11,500

Predetermined rate = $3 per hour

Then,

Applied fixed overhead

= 11,500 hours × $3 per hour

= $34,500

3 0
3 years ago
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