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
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.

You might be interested in
What is a trailing stop loss
Sveta_85 [38]

A trailing stop-loss order is a special type of trade order where the stop-loss price is not set at a single, absolute dollar amount, but instead is set at a certain percentage or a certain dollar amount below the market price. A trailing stop-loss is sometime referred to simply as a trailing stop.

4 0
3 years ago
Read 2 more answers
Consider the following Specific Factors model. Suppose two countries, Home and Foreign, produce two goods, timber and television
jok3333 [9.3K]

Answer:

a. True

b. True

c. True

d. False

e. True

f. False

g. False

Explanation:

There are two countries which are about to enter into the free trade. Under the free trade circumstances the Home country will produce timber but it does not completely specializes in producing the timber. The labor is mobile factor which can move in the free trade therefore they will move towards their employability in the TV industry.

7 0
3 years ago
LLY Corporation is planning to issue a $1,000 face value bond with a maturity of 30 years. The annual coupon rate is expected to
VladimirAG [237]

Answer:

$739.72 ≈  739.72

Explanation:

we can use an excel spreadsheet and the present value function to calculate the expected price of each bond ⇒ =PV(rate,nper,pmt,fv,[type])

  • fv = $1,000
  • pmt = $1,000 x 7.25% x 1/2 = $36.25
  • nper = 60
  • rate = 10% / 2 = 5%
  • present value = ?

=PV(5%,60,36.25,1000) = -739.72 since excel calculates the initial investment, it is always negative, so we just change the sign.

6 0
3 years ago
What is the major advantage of processing information automatically?
Lady bird [3.3K]
The answer is we can use our cognitive resources for other more important matters. In addition to social cognition, it brings up to the way people select, understand, remember, and use social data to make conclusions and decisions about themselves and others and Schemas are the cognitive constructions we use to establish our information of the social world.
7 0
3 years ago
Corporate culture is important to have in an organization which jf the following is a readin why corporate culture is important
solniwko [45]

Corporate culture is important as it guides how the workers in a company act and think.

<h3>What is corporate culture?</h3>

It should be noted that corporate culture simply means the behaviors that determine how the employees of a company interact.

In this case, corporate culture is important as it guides how the workers in a company act and think.

Learn more about culture on:

brainly.com/question/25010777

#SPJ1

6 0
2 years ago
Other questions:
  • Miriam's employer offers paid vacations, health insurance, and life insurance, as well as a 401(k). Currently, Miriam is partici
    7·1 answer
  • "refer to your way, inc. what type of products is sold at your way?"
    15·1 answer
  • Orlando Enterprises reports the following information at December 31, 2016:a. Requirement 1. What is the actual manufacturing ov
    10·1 answer
  • Your Way, Inc. Eric buys companies that are small or companies in financial trouble. He helps these companies turn around and de
    9·1 answer
  • Two methods can be used to construct a statement of cash flows: the direct method and the indirect method. Under the indirect me
    7·1 answer
  • Marshmellow Corporation sells a product for $140 per unit. The product's current sales are 12,500 units and its break-even sales
    8·1 answer
  • A customer sells 1 ABC Jul 90 Put at $5 when the market price of ABC is $89. The market falls to $82 and the customer is exercis
    11·1 answer
  • Mr. quinones, a fifth-grade teacher, gives a blue plastic star to each student who achieves a high score on a math or spelling t
    14·1 answer
  • joe, a hair dresser, offers students a discount price on haircuts. this form of pricing is an example of
    10·1 answer
  • How differently would you allocate assets between an elderly couple and a young entrepreneur?
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!