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
If all of your organization's data is centralized in a small number of data centers, than focusing security on perimiter defense
Bogdan [553]

The answer is false.

To stop attacks and secure essential data, defense-in-depth user protection entails a mix of security products (e.g., WAF, antivirus, antispam software, etc.) and training. Multiple security products can be bundled in the same package by a provider providing software to protect end users against cyberattacks.

If one protection fails, another is present to prevent an attack. This deliberate redundancy increases security and helps guard against a broader range of assaults.

Therefore, answer is false.

To know more about data center click here:

brainly.com/question/13440433

#SPJ4

5 0
1 year ago
Select all the choices that decision makers could use marginal analysis for to make effective decisions.
mylen [45]
<span>Adding a machine to the factory and producing another car would be the choices that decision makers could use marginal analysis to make effective decisions.</span>
7 0
2 years ago
Read 2 more answers
Grand River Corporation reported pretax book income of $620,000. Included in the computation were favorable temporary difference
Alex

Answer:

The corporation's current income tax expense or benefit would be $86,940.

Note: The Internal Revenue Service (IRS) 2019 tax rate of 21% for corporation is used since the tax rate is not given in the question.

Explanation:

Details                                                                Amount ($)

Pretax book income                                             620,000

Favorable temporary differences                       (160,000)    

Unfavorable temporary differences                    106,000

Favorable permanent differences                    <u> (152,000) </u>

Adjusted income                                                  414,000

Tax expenses (at 21%)                                     <u>   (86,940)  </u>

Profit after tax                                                     <u> 327,060   </u>

Therefore, the corporation's current income tax expense or benefit would be $86,940.

Note: The Internal Revenue Service (IRS) 2019 tax rate of 21% for corporation is used since the tax rate is not given in the question.

7 0
3 years ago
Land's End allows customers buying shirts to choose from a variety of fabrics, types of collar and sleeve, based on the customer
antoniya [11.8K]

Answer: Micromarketing.

Explanation:

Micromarketing is applied by Land's end clothing company, where different tiny sections of a market are being targeted by the clothing designs and sizes produced. Micromarketing is form of marketing, where a smaller section of a large market is a company's target for sales.

6 0
3 years ago
What is the equation of inventory turnover?
Ilia_Sergeevich [38]
The equation<span> for </span>inventory turn over <span>equals the cost of goods sold or net sales divided by the average </span>inventory<span>.</span>
3 0
2 years ago
Other questions:
  • Intellectual Property can be protected by
    5·1 answer
  • A firm pursuing a best-cost provider strategy A. seeks to achieve the best costs by using the best operating practices and incor
    6·1 answer
  • How does unemployment rate help you determine if the economy is strong or weak
    6·1 answer
  • In the current year, Oriole Corporation donated a painting worth $30,000 to the Texas Art Museum, a qualified charity. The museu
    7·1 answer
  • The C.O.R.E Continuum identifies relationships that affect organizations’:
    10·1 answer
  • "A bond that was originally sold at par is now trading in the market at a premium. The bond is called at par. This action will b
    11·1 answer
  • What are the advantages of a Free Enterprise system to consumers?
    11·2 answers
  • Explain how money market accounts differ from regular savings accounts.
    9·1 answer
  • At Sheridan Electronics, it costs $30 per unit ($16 variable and $14 fixed) to make an MP3 player that normally sells for $49. A
    8·1 answer
  • the financial meltdown of 2008 was in part due to , demonstrating the dangers of relying too heavily on the quantitative techniq
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!