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Fynjy0 [20]
3 years ago
10

You are conducting a discounted cash flow analysis (DCF). You purchased an asset for $400,000 at time point zero. The asset was

depreciating using straight line depreciation over a ten year schedule. When you initially placed the asset into service, you expected the asset to have a disposal / salvage value of $0. At the end of year seven the project is suddenly cancelled due to a change in technology and the asset is sold in the open market for $110,000. Prior to this transaction, the firm was forecasted to earn $1,000,000 profit after tax in year seven and the tax rate for the firm is 20%. What is the cash flow, in time period seven, as a result of this transaction
Business
1 answer:
andrew11 [14]3 years ago
6 0

Answer: $112000

Explanation:

First, we calculate the book value in year 7 which will be:

= Depreciation × Balance life

= $400,000 × 3/10

= $120,000

Then, the cash flow as a result of the transaction will be:

= Asset sale - (Asset - Book value) × Tax rate

= 110000 - [(110000 - 120000) × 20%]

= 110000 - (-2000)

= 110000 + 2000

= 112000

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andrew11 [14]

Answer:

Explanation:

"El comercio internacional de mascotas exóticas es un factor importante y creciente de la pérdida de biodiversidad y, a menudo, compromete los estándares requeridos para un buen bienestar animal; una quinta parte de los informes recientes sobre el comercio de vida silvestre se debió a la demanda de mascotas o animales para su uso en entretenimiento; cosecha insostenible de animales salvajes

8 0
3 years ago
In 1-2 sentences, explain how wage discrimination results in unequal pay.
oksian1 [2.3K]
Wage discrimination 
when somebody is paid less than somebody else based upon a physical characteristic
5 0
3 years ago
On February 1, 2020, Bonita Industries factored receivables with a carrying amount of $645000 to Sandhill Co.. Sandhill Co. asse
malfutka [58]

Answer:

$19,350

Explanation:

The finance charge is 3%. If the 5% retention is a non-refundable security, then the total loss would be 8% (3%+5%).

The nature of the retention is not given, so it is considered that it is refundable, then the total loss would be $19,350 ($645,000*3%).

Thus, the total loss to be reported is $19,350

5 0
3 years ago
Halifax Manufacturing allows its customers to return merchandise for any reason up to 90 days after delivery and receive a credi
borishaifa [10]

Answer:

Halifax Manufacturing allows its customers to return merchandise for any reason up to 90 days after delivery and receive a credit to their accounts. All of Halifax's sales are for credit (no cash is collected at the time of sale). The company began 2021 with a refund liability of $330,000. During 2021, Halifax sold merchandise on account for $11,800,000. Halifax's merchandise costs is 70% of merchandise selling price. Also during the year, customers returned $345,000 in sales for credit, with $191,000 of those being returns of merchandise sold prior to 2021, and the rest being merchandise sold during 2021. Sales returns, estimated to be 3% of sales, are recorded as an adjusting entry at the end of the year.

Explanation:

Halifax Manufacturing allows its customers to return merchandise for any reason up to 90 days after delivery and receive a credit to their accounts. All of Halifax's sales are for credit (no cash is collected at the time of sale). The company began 2021 with a refund liability of $330,000. During 2021, Halifax sold merchandise on account for $11,800,000. Halifax's merchandise costs is 70% of merchandise selling price. Also during the year, customers returned $345,000 in sales for credit, with $191,000 of those being returns of merchandise sold prior to 2021, and the rest being merchandise sold during 2021. Sales returns, estimated to be 3% of sales, are recorded as an adjusting entry at the end of the year.

6 0
3 years ago
Tony's marginal income tax rate is 24%, and he pays FICA tax on his entire salary (7.65%). Tony's employer offered him a choice
Vlad [161]

Answer: The fringe benefit is worth $182 more than the additional salary.

Explanation:

The Fringe benefit is valued at $3,600.

The additional salary after taxes is:

= 5,000 - (5,000 * 24%) - (5,000 * 7.65%)

= 5,000 - 1,200 - 382.5

= $3,418

The Fringe benefit is worth more than the salary by:

= 3,600 - 3,418

= $182

<em>Options are more probably for a variant of this question. </em>

8 0
3 years ago
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