Answer:
no option is correct, the correct answer is $12,630
Explanation:
after tax salvage value of old machine = $12,000 - [($12,000 - $15,000) x 21%] = $12,000 - (-$3,000 x 21%) = $12,000 - -$630 = $12,630
the tax shield generated by this loss (market value is lower than book value) = $630
the cash received form the sale = $12,000
the combined effect = $12,000 + $630 = $12,630
Answer:
Margin of safety = $300000
Explanation:
The margin of safety is the amount or units in excess of the break even level of sales or units. It is the region beyond the break even point and represents the profit for the business. Any units in excess of the break even point represents the margin of safety.
The margin of safety for the given question with expected sales of $500000 and break even sales of $200000 can be calculated as follows,
Margin of safety = 500000 - 200000 = $300000
D. You should check to see if they align with yours and as a basis for a possible question
Answer:
In light of research of Overstock's money related accomplishment, clearly these exposures influenced Overstock's trading cost. Theorists and customers of the spending reports despite everything have restrictive necessities that the self-governing reviewers ensure that financial reports are truly addressed. This has influenced audit and the board obligations and puts more weight on associates and authorities to appropriately address their financial rundowns. I think Grant Thornton acted inappropriately in light of their clashing use of the $785,000 A/R/Gain Contingency. Grant Thornton didn't from the outset prescribe making an altering section in this way Overstock gave their 10-k with the $785000 as expansion plausibility.
