Answer:
0.67
Explanation:
Opportunity cost is the cost of the next best option forgone when one alternative is chosen over other alternatives.
If the family buys one can of soup, the opportunity cost is the frozen food forgone.
Opportunity cost of one can of soup = 60 / 90 = 0.67
I hope my answer helps you
Answer:
$1,260,000
Explanation:
Given that,
Annual depreciation expense = $3.6 million
Marginal corporate tax rate = 35%
Average corporate tax rate = 30%
The reason to use marginal tax shield is that the firm would save additional amount it would have paid in taxes.
Value of the depreciation tax shield:
= Marginal corporate tax rate × Annual depreciation expense
= 35% × $3,600,000
= $1,260,000
Therefore, the value of the depreciation tax shield on the company's new project is $1,260,000.
Answer:
Date Particulars Debit Credit
Jan 3 Cash $240,000
Common stock (30000*5) $150,000
Paid-in-capital in excess $90,000
Nov 2 Treasury stock $15,000
Cash $15,000
Dec 6 Cash $7,200
Treasury stock[75000/1500*600) $6,000
Paid in capital from treasuty cash $1,200
