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Keith_Richards [23]
3 years ago
11

2. Your company has to liquidate some equipment that is being replaced. The original cost of the equipment is $100,000. The firm

has deprecated 65% of the original cost. The salvage value of the equipment today is $50,000. The firm has a tax rate of 30%. What is the equipment’s after-tax net salvage value? Please show your work.
Business
1 answer:
ira [324]3 years ago
7 0

Answer: $45,500

Explanation:

Cost of equipment = $100,000

Less: Depreciation = 65% × $100,000 = $65,000

Book value = $35000

Less: Savage value = $50,000

Loss on sale = $15000

Less: Tax Payable = 30% × $15000 = $4500

After tax Savage value = $50000 - $4500 = $45,500

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Vinvika [58]

Answer:

The indifference point is 50,000 units.

Explanation:

Giving the following information:

Location choice I has monthly fixed costs of $100,000 and per-unit variable costs of $10. Location choice J has monthly fixed costs of $150,000 and per-unit variable costs of $9.

First, we need to determine the total cost formula for each location:

Location I:

Total cost= 100,000 + 10x

Location J:

Total cost= 150,000 + 9x

Now, to calculate the indifference point, we need to isolate X:

100,000 + 10x= 150,000 + 9x

x= 50,000 units

The indifference point is 50,000 units.

7 0
3 years ago
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Savatey [412]

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3 years ago
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Vitek1552 [10]

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Answer:

D). Global

Explanation:

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3 years ago
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