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
Cerrena [4.2K]
3 years ago
15

Your company purchases new equipment for $80,000 and depreciates it on a straight line basis over a 5 year period resulting in a

nnual depreciation expense of $16,000. At the end of the 4th year, a buyer purchases it from your company for $30,000. If your company's marginal tax rate is 40%, what is the after tax cash flow or after tax salvage value at the end of year 4
Business
1 answer:
lisov135 [29]3 years ago
7 0

Answer:

$24,400

Explanation:

The computation of the after tax salvage value at the end of year 4 is shown below:

Before that following calculation need to be determined

Book value = Cost - Accumulated depreciation

= $80,000 - ($16000 × 4 years)

= $16,000

Now gain on sale is

= $30,000 - $16,000

 = $14,000

Now

After-tax cash flow is

= Sale proceeds - (Tax rate × Gain on sale)

= $30,000 - ($14000 × 40%)

 = $24,400

You might be interested in
Wholesome Cuisine, a frozen foods company, decides to create a new mail order meal division, focused on offering delicious food
emmasim [6.3K]

Answer:

Idea development

Explanation:

At the idea development stage, the company just decides to appraise and investigate whether the innovative idea is feasible and that will it generate value for the company in the long term. Furthermore, the idea is just a theoretical information that just sounds good for the business future and there is further investigation pending to appraise it.

3 0
3 years ago
Why does manufacturing's multiplier effect matter to an economy?
irga5000 [103]

Answer:

It has a greater impact than service industries.

Explanation:

6 0
2 years ago
Unlike manufacturers, ________ buy products from other businesses but do not significantly alter the form of the products they b
LenKa [72]

Answer: Resellers

Explanation:

Resellers buy products from other businesses but do not significantly alter the form of the products they buy before selling them.

A reseller is a type of channel partner that acts as an intermediary between companies that make, distribute or provide IT products or services and end customers, which may be businesses or consumers. A key reseller role has been order fulfillment: The customer goes to a reseller to simplify the ordering process and offload procurement and order processing tasks.

Working with a reseller can also streamline product sourcing. A business that needs to purchase multiple technology components can make those purchases through a single reseller versus approaching multiple manufacturers or service providers directly. Competitive pricing may also attract customers to resellers.

6 0
3 years ago
Read 2 more answers
Consumers who take vitamin/mineral supplements should be aware that excessive intakes could pose hazards, and should refer to th
BaLLatris [955]

Answer:

estimated average requirement

Explanation:

Many people (if not almost everyone) believes that vitamins and minerals are good, and more of them are even better. But anything in excess, including good things can be bad for you. E.g. if you do not consume enough iron you might develop anemia, but excess iron can poison you.

The estimated average requirement (EAR) values are intake levels that meet at least 50% of the populations needs. Your individual requirement levels might vary depending on your height, weight, age or activity levels, but the EAR serves as a good starting point to calculate your own individual needs.

4 0
3 years ago
If there are 100 transactions in a year and the average value of each transaction is $10, then if there is $200 of money in the
trapecia [35]

Answer:

the answer is C:5 how I know: I did it

4 0
2 years ago
Other questions:
  • Accounting professors earn more than English professors at most universities. Explain this with a supply and demand graph.
    15·1 answer
  • A company is considered large if it
    6·1 answer
  • When a firm is experiencing economies of scale, long-run a. average total cost is minimized. b. average total cost is greater th
    15·1 answer
  • Find the present value that will grow to $45,000 if interest is 3.6% compounded monthly for 1 year.
    12·1 answer
  • Which of the following organizations would be MOST likely to face a dynamic/complex environment? a. Oracle b. Whirlpool c. JCPen
    12·1 answer
  • Jamie ensures that his subordinates are closely guided and instructed throughout a project. He believes that this makes him a hi
    6·1 answer
  • Sawyer Manufacturing Corporation uses a predetermined overhead rate based on direct labor-hours to apply manufacturing overhead
    15·1 answer
  • If you use your ATM card, you should write the transaction in your check register.
    11·2 answers
  • Arthur is a California resident. He was ordered to pay $2,000 in alimony and $3,000 in child support to his former spouse. He me
    5·1 answer
  • According to Peter G. Keen, a former MIT professor, which is a benefit of a decision support system (DSS)
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!