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Olenka [21]
3 years ago
11

Metro Corporation will spend $1 million for special manufacturing equipment. Shipping and installation charges will amount to $1

75,000 and an initial increase in net working capital of $50,000 will be required. The equipment will replace an existing machine that has a salvage value of $85,000 and a book value of $140,000. If Metro has a current marginal tax rate of 34%, what is the amount of the initial outlay for this project
Business
1 answer:
Dafna1 [17]3 years ago
4 0

Answer: (1121300)

Explanation:

The initial outlay for the project will be:

Machinery purchase price = =-1000000-175000 = (1,175,000)

Less: Proceed from old machine =

= =85000+(140000-85000) × 34% = 103,700

Net working capital = 50,000

Initial outlay = (1121300)

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no

Explanation:

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3 years ago
Alain mire files a single tax return and has adjusted gross income of $304,000. his net investment income is $53,000. what is th
scoray [572]

Answer:

$2,014

Explanation:

Alain's net investment income tax is the lesser of 1) his net investment income ($53,000) or 2) his modified adjusted gross income less the threshold of $200,000 .

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($53,000 × 3.8% )= $2,014

The additional tax that alain will pay on his net investment income for the year is $2,014

4 0
3 years ago
Refer to the scenario to answer the following questions. A government worker surveys a number of households and comes up with th
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Explanation:

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3 0
3 years ago
If the economy is hit by a negative real shock that raises inflation and unemployment, which fiscal policy action should the gov
aev [14]

Answer: There is no fiscal policy action that can keep the inflation and unemployment stable.

Explanation:

If there is a negative real shock such as an oil crisis, it will be hard fir the affected economy to adjust and be stable.

A negative real shock will lead to a reduction in growth and a rise in inflation. Even in cases whereby there is an increase in the money supply, this will lead to a rise in real growth but the result will be that there will be an higher inflation

Therefore, there is no fiscal policy action that can keep the inflation and unemployment stable.

8 0
4 years ago
For 2021, Rahal's Auto Parts estimates bad debt expense at 1% of credit sales. The company reported accounts receivable and an a
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Answer:

$80,160.

Explanation:

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3 years ago
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