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Gnom [1K]
3 years ago
15

Your firm needs a computerized machine tool lathe which costs $51,000 and requires $12,100 in maintenance for each year of its 3

-year life. After three years, this machine will be replaced. The machine falls into the MACRS 3-year class life category. Assume a tax rate of 34 percent and a discount rate of 11 percent. If the lathe can be sold for $5,100 at the end of year 3, what is the after-tax salvage value
Business
1 answer:
valkas [14]3 years ago
3 0

Answer:

$4,650.89

Explanation:

Year Depreciation rate     Depreciation      Book Value

                                           (51000*Rate)

1            33.33%                   $16,998.30         $34,001.70

2           44.45%                   $22,669.50        $11,332.20

3           14.81%                     $7,553.10            $3,779.10

4           7.41%                       $3,779.10

            100%                       $51,000

Sale Value                                   $5,100

Book Value at end of 3 years    <u>$3,779.10</u>

Net Gain on Sale                         <u>$1,320.90</u>

Tax On Gain = $1320.90*0.34

Tax On Gain = $449.11

After-tax salvage value = $5100 - $449.11

After-tax salvage value = $4,650.89

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What is a commodity?
BabaBlast [244]

The correct answer is D. Something of value that can be bought, sold, or traded

Explanation:

The word "commodity" is used in economics to refer to any good or product that has an economic value and due to this, can be part of the market. This means any commodity can be traded, sold, or bought. Moreover, this concept is mainly applied to raw materials such as coal, timber, or wheat that can be used to make other manufactured products such as plastics, furniture, or flour. According to this, the option that correctly describes the word commodity is option D.

3 0
3 years ago
Which of the following statements is true a. ​in market equilibrium there are unconsummated value-creating transactions b. ​in m
Svetlanka [38]

Answer: C. ​in market equilibrium there are no unconsummated wealth-creating transactions

Explanation:Market equilibrium is a term in Macroeconomics used to describe the price at which the Quantity of goods demanded is equal to the Quantity of goods supplied.

Wealth-creating transactions are money making transactions, these transactions are those that takes place and are paid for.

IN A MARKET EQUILIBRIUM THE QUANTITY OF GOODS DEMANDED IS EQUAL TO THE QUANTITY OF GOODS SUPPLIED MAKING THE ECONOMY TO HAVE NO UNCONSUMMATED WEALTH-CREATING TRANSACTIONS.

5 0
3 years ago
Read 2 more answers
suppose that you are a member of the board of governors of the federal reserve system. the economy is experiencing a sharp rise
vivado [14]

The board of governors of the federal reserve system. The interest rate that a bank charges another bank for an overnight loan may be referred to as the federal fund rate. In other terms.

It refers to the interest added to any overnight are borrowing or lending of excess reserves by others.The Federal Reserve uses the Federal Fund Rates to help keep inflation under control and promote healthy economic growth.In this situation, where a nation's economy is seeing a strong rise in inflation, I would advise raising the federal funds rate to help rein in the rising inflation rate.The relative abundance or scarcity of reserves at the Federal Reserve is directly tied to both the inflation rate and the Federal Funds Rate.If an economy is going through a sharp and protracted inflationary tendency, I'll suggest the following adjustments.Increase in reserve ratio: I'll do that. Discount percentage: I'll raise the discount percentage.Open market operations: I propose reducing the money supply by increasing the sale of government bonds.

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4 0
1 year ago
10
SCORPION-xisa [38]

Answer:

I want to say c cause it's 40 but then again I don't know

6 0
3 years ago
A salesperson shows his broker an offer for one of his listings that has a good faith deposit in the form of a promissory note.
12345 [234]

Answer:

The seller must be informed when the offer is presented that the depositis a promissory note

Explanation:

A good faith deposit is one that is done by a buyer in which conditions are stated that could result in the loss of deposit by the buyer.

It is a deposit made by the buyer to show he intends to complete the payment later.

In this instance if there is a Goodwill deposit in form of a promissory note, the broker needs to be aware.

So that when he is bringing in a client he will consider the already existing deposit.

Deals that offer more deposit or full payment will be considered and the original buyer discarded.

8 0
3 years ago
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