Answer:
b. $26,666
Explanation:
Additional first-year depreciation =40000*0.5 = 20000
MACRS cost recovery = (40000-20000)*0.3333 = 6666
Total cost recovery deduction for 2017= 20000+6000 = 26666
Answer:
C. $50,000
Explanation:
The computation of the Mabel's capital account after formation of the partnership account is shown below:
Total contribution by both the partners equals to
= Mabel contribution + Pierre contribution
= $25,000 + $50,000
= $75,000
Mabel contribution = Total contribution × Mabel share ÷ total share
= $75,000 × 4 ÷ 10
= $30,000
And, the land was sold for $50,000
So, Mabel share on the sale of land = $50,000 × 4 ÷ 10 = $20,000
Total amount recorded = $30,000 + $20,000 = $50,000
The total budgeted overhead cost for a single unit is $2.26. The calculation of the budgeted overhead is formulated below.
<h3>What is Inventory?</h3>
Inventory is the current asset of a company, which the company sells to generate revenue and profits, the inventory is reported in the statement of financial position in the assets side under the current asset head. The details about the inventory can be checked and reviewed in the notes to the financial statements.
In a service sector company there is no inventory, but a manufacturing and those companies which sell goods have large amount of inventory.
The budgeted overhead can be calculated as:
The total per unit variable cost + Fixed costs per unit.
Calculating fixed cost per unit
$950 / 940 units = $ 1.01
The total per unit variable cost + Fixed costs per unit.
$1.25 + $ 1.01 = $ 2.26
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Answer:
9.04%
Explanation:
The computation of firm's WACC is shown below:-
MV of equity = Price of equity × Number of shares outstanding
= $68 × 12,200
= $829,600
MV of Bond = Par value × bonds outstanding × Percentage of par
= $1,000 × 370 × 0.951
= $351,870
MV of firm = MV of Equity + MV of Bond
= $829,600 + $351,870
= $1,181,470
After tax cost of debt = Cost of debt × (1 - Tax rate)
After tax cost of debt = 5.99 × (1 - 0.39)
= 3.6539
Weight of equity = MV of Equity ÷ MV of firm
= $829,600 ÷ $1,181,470
=0.7022
Weight of debt = MV of Bond ÷ MV of firm
= $351,870 ÷ $1,181,470
= 0.2978
WACC = After tax cost of debt × Weight of debt + Cost of equity × Weight of equity
= 3.65 × 0.2978 + 11.33% × 0.7022
= 9.04%
People who have a higher income pay more taxes. so their taxes that they pay the gov would be higher
