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
Vika [28.1K]
3 years ago
12

Purple Rose Corporation reported pretax book income of $500,000.

Business
1 answer:
Vikentia [17]3 years ago
5 0

Answer: $68,000

Explanation:

Let us assume that we are given a tax rate of 34% to use in computing the question. Therefore, Purple Rose's current income tax expense or benefit will be:

Pre-tax book income = $500,000

Less: Tax depreciation = $300,000

Net Income = $500,000 - $300,000 = $200,000

Current income tax expenses at 34% will then be:

= 34% × Net income

= 34/100 × $200,000

= $68,000

You might be interested in
What tax event must take place when a taxpayer receives a Form 1099-A?
Ad libitum [116K]
Gain or loss from the sale of property must be calculated. The loss from foreclosure of property must be subtracted from wage income.
8 0
2 years ago
On January 1, Ramirez Supply leased a car for a four-year period, at which time possession of the car will revert back to the le
ohaa [14]

Based on the amount that Ramirez guaranteed the lessor and the estimated residual value, the amount to be added to the right-of-use asset is $1,434.33.

<h3>What amount should be added to the right-of-use asset?</h3>

This would be the present value of the difference between the guaranteed amount and the estimated residual value.

= 42,300 - 40,200

= $2,100

Present value:

= 2,100 / (1 + 10%)⁴

= 1,434.328

= $1,434.33

In conclusion, the right-of-use asset amount to be added is $1,434.33.

Find out more on present value at brainly.com/question/20813161.

#SPJ1

5 0
2 years ago
Bassett Fruit Farm expects its EBIT to be $373,000 a year forever. Currently, the firm has no debt. The cost of equity is 13.2 p
julia-pushkina [17]

Answer:

The correct answer is $1,836,742.42.

Explanation:

According to the scenario, the given data are as follows:

EBIT = $373,000

Cost of equity = 13.2%

Tax rate = 35%

So, we can calculate the unlevered value of the firm by using following formula:

Unlevered value of the firm = EBIT × (1 - TAX RATE) ÷ COST OF EQUITY

By putting the value, we get

Unlevered value of the firm = $373,000 × ( 1 - 35%) ÷ 13.2%

= $373,000 × 0.65 ÷ 0.132

= $242,450 ÷ 0.132

= $1,836,742.42

6 0
3 years ago
Almost all tasks in a project will be connected using either _____ or _____ dependencies.Select an answer:a)start-to-finish; fin
anyanavicka [17]

Answer:

c) finish-to-start; start-to-start

Explanation:

Project dependencies are the time relationships between a predecessor and a successor in project management. In other words, these dependencies describe which activity among the two needs to start earlier or later and when it needs to start or finish compared to the other one.

The most common type of dependency in all projects (no matter the nature or industry) is the finish-to-start one, where the activity A needs to be completed before activity B starts, e.g. base nail polish has to be put before the top coat gets put on the nails.

The second most common type of dependency is the<em> start-to-star</em>t one, where two activities need to start at the same time. This is common for activities where synchronization is paramount.

3 0
3 years ago
Read 2 more answers
A short forward contract that was negotiated some time ago will expire in 4-month and has a delivery price of $42.25. The curren
padilas [110]

Answer:

the  value of the short forward contract is -0.49

Explanation:

the computation of the value of the short forward contract is shown below:

= (Delivery price - current forward price)× e^(risk free interest rate × no of months ÷ total number of months)

= ($42.25 - $42.75)× e^(-7.90% × 4÷12)

= -0.49

Hence, the  value of the short forward contract is -0.49

Therefore the same should be considered  

8 0
3 years ago
Other questions:
  • 24. You have saved $4,000 for a down payment on a new car. The largest monthly payment you can afford is $350. The loan will hav
    6·1 answer
  • Which organization sets monetary policy for the United States? Board of Governors Congress Federal Open Market Committee Federal
    9·2 answers
  • According to the information provided in english 120, why might a subject encyclopedia be useful to start a research project?
    11·1 answer
  • Is quadrilateral JKLM the result of a dilation of quadrilateral
    6·1 answer
  • During the maturity stage of the product life cycle, profit declines primarily because: Multiple Choice a) there is fierce price
    8·1 answer
  • Alpha Mining Company recognizes $2 of depletion for each ton of ore mined. During 2016, 850,000 tons of ore were mined and 725,0
    6·1 answer
  • The Three Amigos Restaurant just paid an annual dividend of $4.20 per share and is expected to pay annual dividends of $4.40 and
    7·1 answer
  • Suppose you just bought an annuity with 11 annual payments of $16,100 at the current interest rate of 12.75 percent per year. a.
    14·1 answer
  • 5-5 TIME TO REACH A FINANCIAL GOAL You have $33,556.25 in a brokerage account, and you
    14·1 answer
  • 4. Why is China's entry into the WTO important for multinational companies like PepsiCo?
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!