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
horrorfan [7]
3 years ago
14

Equipment that was purchased for $900,000 has a current book value of $450,000. Assume a capital gains tax rate of 28%. Compute

the net tax payment or savings if you sell the equipment for $636,400.
Business
1 answer:
natita [175]3 years ago
7 0

Answer:

there is an increase in taxes of $52,192

Explanation:

The computation of the net payment or saving is shown below:

Given that

Book value = $450,000

Sale value = $636,400

since the sales value is more than the book value so here the capital profit is there

Therefore capital profit would be

= $636,400 - $450,000

= $186,400

Now tax would be

= $186,400 × 28%

= $52,192

So there is an increase in taxes of $52,192

You might be interested in
A stock has a beta of 1.28, the expected return on the market is 12 percent, and the risk-free rate is 4.5 percent. What must th
monitta

Answer:

The expected return=17.78 percent

Explanation:

Step 1: Determine risk free rate, beta and market risk premium

risk free rate=4.5%

beta=1.28

market risk premium/return on market=12%

Step 2: Express the formula for expected return

The expected return can be expressed as follows;

ER=RFR+(B×EMR)

where;

ER-expected return

RFR=risk free rate

B=beta

EMR=expected market return

replacing with the values in step 1;

ER=(4.5)+(1.28×12)

ER=4.5+13.28

ER=17.78

The expected return=17.78 percent

5 0
3 years ago
An analyst is evaluating securities in a developing nation where the inflation rate is very high. As a result, the analyst has b
irakobra [83]
Thank you for posting your question here at brainly. The real risk-free rate is 6%, what average rate of inflation is expected in this country over the next 6 years is 1.266.  <span>If the risk-free rate is 5% and expected inflation rate is 16%, that would result in a total rate of 21%. Then divide 1 by 0.79 = 1.266. Therefore, my answer is a yield of 26.6% is required.</span>
8 0
4 years ago
When you first started your new business, you were so excited about the large volume of orders you had. One year later, you find
ioda
I would suggest it would most likely to be either A or B or both, however if I had to pick one I would go for A.

A - The question suggests you may have been putting more effort and <span>enthusiasm</span> into sales of the products for your new business "<span>you were so excited about the large volume of orders you had" which may mean after your first year of business you may have started to slack of or get complacent with putting you business out there marketing wise, also when launching a product for the first time people are interested in the new and latest thing (such as a new business) after a while people start to forget unless you have marketing and advertising to remind them.
</span>
B - If the product you offer is unique and you were the first business to sale this / these items then after a year it is possible other competitors have started to copy you however this would completely depend on the products you sale.

C - Given you already had large orders in the first year people are happy to pay for the products you offer so this would exclude C.

D - If you have already had many orders in the first year people obviously want the products you sale even if you only sale 1 or 2 things so unlikely to be D.


8 0
3 years ago
Which of the following refers to the knowledge and competence of service providers and the ability to convey trust and confidenc
Fittoniya [83]

Answer:

Assurance

Explanation:

Assurance refers to providing guarantee for the work done about the quality and quantity of work done.

This provides an ability of confidence and faith in the user. Therefore, the correct option for conveying competence in the service and their knowledge through service provided the with the confidence that the service provided will fulfill the demand of user is Assurance.

5 0
4 years ago
Miser Materials paid $27,500 in dividends and $28,311 in interest over the past year while net working capital increased from $1
stepan [7]

Answer:

The amount of the cash flow from assets is outflow of $42,000, all other cash a re from Cash flow from operation and cash flow from finance.

Explanation:

Operating Cash Flow

net working capital increased from $13,506 to $18,219.

depreciation expenses of $16,805.

Investing Cash Flows

company purchased $42,000 in net new fixed assets

Financing Cash Flows

Miser Materials paid $27,500 in dividends

$28,311 in interest over the past year

firm issued $25,000 in net new equity

and paid off $21,000 in long-term debt.

7 0
3 years ago
Other questions:
  • Marcie and her husband, Franklin, each own 50 shares of Chestnut, Inc. Sally, Marcie's old high school friend, owns the remainin
    7·1 answer
  • (a) what was the opportunity cost of non-gm food for many buyers before 2008?
    13·1 answer
  • What is moral hazard? It refers to the actions people take before they enter into a transaction so as to mislead the other party
    9·1 answer
  • Work in Process Apr. 1 Balance 7,000 Apr. 30 Goods finished X 30 Direct materials 78,400 30 Direct labor 195,000 30 Factory over
    6·1 answer
  • Organizations tend to increase the amount of planning and control closer to the point of execution when:
    14·1 answer
  • How to figure projected overhead
    11·1 answer
  • You are a human resources manager. What are some of the things you need to be thinking about in order to make the company be abl
    8·1 answer
  • Good Vibrations
    9·2 answers
  • As a project manager, what action can you take during initiation to avoid project disruption?
    7·1 answer
  • A<br> Advantages of Product Added Mothed<br> Accounting<br> in National income
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!