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dem82 [27]
3 years ago
15

Donata Company purchased equipment for $30,000 in December 20x1. The equipment is expected to generate $10,000 per year of addit

ional revenue and incur $2,000 per year of additional cash expenses, beginning in 20x2. Under MACRS, depreciation in 20x2 will be $3,000. If the firm's income tax rate is 40%, the after-tax cash flow in 20x2 would be:
Business
1 answer:
attashe74 [19]3 years ago
5 0

Answer:

Total after-tax cash flow= $6000

Explanation:

Giving the following information:

Equipment value= $30,000 in December 20x1.

Income= $10,000 p

Cost= $2,000 per year.

Depreciation= $3,000.

t=0,40

Cash flow has the following structure:

Income (+)

Cost (-)

Depreciation (-)

=EBIT

TAX (-)

Depreciation (+)

Total

Income= 10000

Costs= -2000

Depreciation= -3000

EBIT= 5000

Tax= -2000

Depreciation= 3000

Total= 6000

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Several years ago, Nicole Company issued bonds with a face value of $1,030,000 for $960,000. As a result of declining interest r
EleoNora [17]

Answer:

Journal Entry

Explanation:

The Journal Entry is shown below:-

Bonds payable Dr,                      $1,030,000

Loss on retirement of bond Dr,       $78,800

($1,091,800 - $1,013,000)

          To discount on bond                      $17,000

          To cash                                            $1,091,800

($1,030,000 × 106%)

(Being retirement of the bonds is recorded)

8 0
3 years ago
What is the PF for Lobster Thermidor?
svp [43]

Answer: 4624

Explanation:

7 0
3 years ago
Petrenko Corporation has outstanding 2,000 $1,000 bonds, each convertible into 50 shares of $10 par value common stock. The bond
Alenkasestr [34]

<u>Solution:</u>

<u>The</u><u> </u><u>following journal entries will be passed:</u>

Accounts                                                                Debit  Credit

Bond Payable (2000 bonds x $1000)               $2,000,000  

Discounts on Bonds Payable                                            $30,000

Common Stock (50 shares x $10 x 2000 bonds)           $1,000,000

Paid -in Capital in Excess of Par--Common Stock            $970,000

(TO RECORD CONVERSION)

Cash ( 2000 * $1000 * 1.01)                                $2020000

Discount on bonds payable                                 $59216

Bonds payable (2000 * $1000)                                                     $ 2000000

Paid - in - Capital - Stock warrant                                                   $79216

(To record issuance of bonds with stock warrant)

6 0
3 years ago
Westside Auto purchases a component used in the manufacture of automobile generators directly from the supplier. Westside’s gene
Mashutka [201]

Answer:

EOQ = 1,095 units

Reorder point: 240 units (at this point the company must do an order to about stock-out)

Cycle time:  33 days (each order last 33 days)

Inventory  cost:

ordering cost: 12,000 / 1,095.44  x $25 per order = $ 273.86

holding cost: 1,095.44 /2 x 0.5 =  $273.86

Total: 273.86 + 273.86 = $547.52

Explanation:

Economic Order Quantity:

Q_{opt} = \sqrt{\frac{2DS}{H}}

D = annual demand =12,000

S= setup cost = ordering cost = 25

H= Holding Cost = 0.50

Q_{opt} = \sqrt{\frac{2(12,000)(25)}{0.5}}

EOQ = 1,095.44

Demand per day: 12,000 / 250 days = 48

Reorder point: 48 units per day x 5 days lead time = 240

Cycle time: the time it takes between orders:

365 /(12,000 / 1,095.44) =  33.3197 = 33 days

total cost:

ordering cost: 12,000 / 1,095.44  x $25 per order = $ 273.86

holding cost: 1,095.44 /2 x 0.5 =  $273.86

Total: 273.86 + 273.86 = $547.52

6 0
3 years ago
On January 1, 2021, Dreamworld Co. began construction of a new warehouse. The building was finished and ready for use on Septemb
ivanzaharov [21]

Based on the information given Dreamworld average accumulated expenditures for 2021 was: $478,000.

<h3>Average accumulated expenditures:</h3>

January 1,2021 $321,000 x 12/12=$321,000

September 1,2021 $471,000 x 4/12 =$157,000

December 31,2021 $471,000 x 0/12 =$0

Total              $1,263,000                       $478,000

Average accumulated expenditures=$321,000+$157,000+$0

Average accumulated expenditures=$478,000

Inconclusion  Dreamworld average accumulated expenditures for 2021 was: $478,000.

Learn more about  average accumulated expenditures here:brainly.com/question/14118745

5 0
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