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Mamont248 [21]
3 years ago
11

An asset used in a four-year project falls in the five-year MACRS class for tax purposes. The asset has an acquisition cost of $

6,020,000 and will be sold for $1,220,000 at the end of the project. If the tax rate is 35 percent, what is the aftertax salvage value of the asset
Business
1 answer:
Olenka [21]3 years ago
6 0

Answer:

The after-tax salvage value of the asset is:

= $793,000.

Explanation:

a) Data and Calculations:

Asset acquisition cost = $6,020,000

Salvage value = $1,220,000

MACRS Depreciation Expenses = $4,800,000

Project useful life or project duration = 5 years

Tax rate = 35%

Tax expense = $427,000

After-tax salvage value = $793,000 ($1,220,000 - $427,000)

b) The salvage value of the project asset is the recovery or residual value after depreciation expenses have been recognized over the project asset's useful life.  Depreciation is an accounting method of spreading the cost of an asset over its useful life.  There are many depreciation methods, including straight-line, double-declining, unit-of-production, sum-of-the-years digits, etc.

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Answer:

1.short run aggregate supply decreases

2.short run aggregate supply decreases

3.short run aggregate supply increases

Explanation:

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1. Even in a healthy economy. As the natural rate of unemployment increases, short run aggregate supply decreases.

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3 years ago
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Answer:

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3 years ago
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A - The question suggests you may have been putting more effort and <span>enthusiasm</span> into sales of the products for your new business "<span>you were so excited about the large volume of orders you had" which may mean after your first year of business you may have started to slack of or get complacent with putting you business out there marketing wise, also when launching a product for the first time people are interested in the new and latest thing (such as a new business) after a while people start to forget unless you have marketing and advertising to remind them.
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3 years ago
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Basile [38]

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First National Bank of America has more than 75% of its assets in first residential fixed-rate mortgages that mature in more tha
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Answer:

2. Interest income will drop by less than $3 million for a sudden 1% drop in market interest rates

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