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weeeeeb [17]
3 years ago
7

A project has sales of $600,000, costs of $366,500, depreciation of $34,500, interest expense of $5,500, and a tax rate of 21 pe

rcent. What is the value of the depreciation tax shield?
Business
1 answer:
Serjik [45]3 years ago
6 0

Answer:

$7,245.00

Explanation:

Calculation for the value of the depreciation tax shield

Using this formula

Depreciation tax shield Value =Depreciation*Tax rate

Let plug in the formula

Depreciation tax shield Value = $34,500 × .21

Depreciation tax shield Value = $7,245.00

Therefore the value of the depreciation tax shield will be $7,245.00

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mars1129 [50]

Answer:

See explanation below

Explanation:

Option of selling unfinished bookcase

Sales

$58

Less Variable cost

$38

Contribution

$20

Less fixed cost

$10

Net profit

$10

Option of selling finished bookcases

Sales

$73

Less variable cost

$7

Contribution

$66

Less fixed cost

$10

Net profit

$56

With regards to the above analysis, it is recommended that Pine street inc. Should go with the option of selling finished bookcases because it would yield the company the highest profit.

7 0
3 years ago
Your friend chooses the Graduated Repayment Plan. What assumption is he making about his future income?
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3 0
3 years ago
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easynotrcards Under a fixed exchange rate regime, if the domestic currency is initially undervalued, that is, above par, the cen
Alina [70]

Answer:

D) foreign; domestic

Explanation:

The central Bank can improve the domestic currency by using the reserves. If the domestic currency undervalued the central bank may intervene to sell the Foreign currency and purchase the domestic currency, which will increase the demand of domestic currency and increase the supply of foreign currency in the market which will improve the value of domestic currency and undervalue the foreign currency.

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3 years ago
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The following information pertains to Sooner Company's cash balance and bank reconciliation as of August 31: Company balance bef
MAXImum [283]

Answer: The correct cash balance for Sooner Company is "(C) $7,150."

Explanation: The balance of the company before the settlement was $ 5000. The data to take into account to adjust the differences are:

Notes collected by the bank $ 2,200

Service fee $ 50

<u>Therefore: 5000 + 2200 - 50 = $7150</u>

6 0
3 years ago
On June 25, Ritts Roofing extended an offer of $250,000 for land that had been priced for sale at $300,000. On July 9, Ritts acc
Kisachek [45]

Answer:

$275,000

Explanation:

The computation of the value that should the land be recorded is shown below:

= Value at which rits accepted the counteroffer of the seller

= $275,000

Hence, the alue that should the land be recorded is $275,000

Basically it records the cost value as per the cost concept

The same should be considered

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2 years ago
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