Answer:
$34,000
Explanation:
Because the SUV weighs over 6,000 pounds, it is not subject to the statutory dollar limits on luxury automobiles.
Under section 179 expensing (limited to $25,000 for SUVs)
= $25,000
Regular MACRS:
= [($70,000 - $25,000) × 0.20}]
= 9,000
Ariff's maximum deduction for 2019 would be:
= $25,000 + $9,000
= $34,000
Answer:
A. drive down inventory investment, lower delivery costs, and improve delivery reliability and speed.
Explanation:
Inventory investment is allocating resources to raw materials, finished goods, and work in progress. Supply managers will outsource logistics services to save costs and improve efficiency in inventory management.
Specialized logistics companies deliver raw material and distribute finished goods at a fast speed and lower cost. Outsourcing will present the supplies manager as reliable in the books of their customers.
Answer:
Overhead at the end of the year was $3,570 under-applied
Explanation:
For computing the ended overhead amount, first, we have to compute the predetermined overhead rate. The formula is shown below:
Predetermined overhead rate = (Total estimated manufacturing overhead) ÷ (estimated direct labor-hours)
= $521,220 ÷ 21,900 hours
= $23.8
Now we have to find the actual overhead which equals to
= Actual direct labor-hours × predetermined overhead rate
= 21,750 hours × $23.8
= $517,650
So, the ending overhead equals to
= Actual manufacturing overhead - actual overhead
= $521,220 - $517,650
= $3,570 under-applied
Answer:
Marketing only occurs when two or more parties are willing to exchange one thing for another thing.
Explanation:
It is understood that marketing only occurs when two or more parties are willing to exchange one thing for another thing.
Answer:
WACC = 0.16637 OR 16.637%
Explanation:
WACC or weighted average cost of capital is the cost of a firm's capital structure which can comprise of debt, preferred stock and common equity. The WACC for a firm with only debt and common equity can be calculated as follows,
WACC = wD * rD * (1-tax rate) + wE * rE
Where,
- w represents the weight of each component based on market value in the capital structure
- r represents the cost of each component
- D and E represents debt and equity respectively
To calculate WACC, we first need to calculate the Market value an cost of equity.
The market value of equity = 30 million shares * $40 per share
MV of equity = $1200 million
The cost of equity can be found using the formula for Price today (P0) under constant growth model of DDM.
P0 = D1 / (r - g)
40 = 4 / (r - 0.07)
40 * (r - 0.07) = 4
40r - 2.8 = 4
40r = 4+2.8
r = 6.8 / 40
r = 0.17 or 17%
MV of debt = 40 million * 96.5% => $38.6 million
Total MV of capital structure = 38.6 + 1200 = 1238.6 million
WACC = 38.6/1238.6 * 0.08 * (1-0.33) + 1200/1238.6 * 0.17
WACC = 0.16637 OR 16.637%
