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Pani-rosa [81]
2 years ago
10

The Wet Corp. has an investment project that will reduce expenses by $25,000 per year for 3 years. The project's cost is $30,000

. If the asset is part of the 3-year MACRS category (33.33% first year depreciation) and the company's tax rate is 26%, what is the cash flow from the project in year 1? (Do not round intermediate calculations. Round your answer to the nearest dollar amount.)
A. $21,100
B. $22,560
C. $20,550
D. $21,880
Business
1 answer:
dangina [55]2 years ago
4 0

Answer:

A. $21,100

Explanation:

net cash flow year 1 = {[savings year 1 - (depreciation expense year 1)] x (1 - tax rate)]} + depreciation expense year 1

cash flow year 1 = {[$25,000 - ($30,000 x 33.33)] x (1 - 26%)} + ($30,000 x 33.33) = [($25,000 - $10,000) x 0.74] + $10,000 = $11,100 + $10,000 = $21,100

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A short-term lease: Multiple Choice Must be accounted for by the short-cut method if using U.S. GAAP. Is defined as having a val
Sauron [17]

Answer: Not required to be accounted for by the short-cut method if using IFRS.

Explanation:

A Short term Lease is one where a person or entity is granted the legal use of a space for a small period of time which is a year or less.

In calculating this, the Sixteenth International Financial Reporting Standards, IFRS 16, states that a Short Term lease may be charged directly to a Profit and Loss account.

It does not approve the use of the Shortcut method which is a qualitative measure of analysis that is ONLY approved under the US Accounting system (GAAP) and even then is not widely used.

6 0
3 years ago
Identify the trade-restraining practice that this example demonstrates. Tubifor, Inc. purchases all available imported lumber so
fomenos

Answer:

"Pursuit of monopoly power" is the correct solution,

Explanation:

  • Through a party, the shareholders of such a monopoly have had the authority to adjust rates, eliminate rivals, thereby dominate the competition within the specific geographical region.
  • Antitrust laws in the United States discourage monopolies and whatever other practices which unduly restrict competitor's commerce. The form of trade restriction shown by this illustration is the acquisition of monopoly control.

Therefore the answer to the above was its right one.

7 0
3 years ago
Every person I have ever met says their favorite pizza is pepperoni pizza. Therefore, I can assume that everyone I ever meet wil
oksano4ka [1.4K]

Answer:

Inductive reasoning

Explanation:

This type of reasoning is considering generalization that is formed and based on some previous experiences and with that previous experiences the observation that is made is forming an inductive reasoning.

In this case, the person met many of them who says that their favorite pizza is pepperoni and then every time that someone say that they love pizza, this person will think of pepperoni pizza because of the previous experiences that caused those observations.

4 0
3 years ago
Beginning Work in Process Inventory was 10,000 units that were 20% complete and 40,000 units started, with ending Work in Proces
lesya692 [45]

Answer:

Material EUP = 5000

Conversion Costs EUP = 51,200

Explanation:

Under weighted average method

Beginning Work in Process Inventory            10,000

Units Started                                                 <u>  = 40,000</u>

Units to account for                                           <u>50,000</u>

<em><u>In the Work In Process for Conversion Costs</u></em>

Beginning Work In Process (10,000*20 %)   = 2000 were complete

Work done on beginning inventory = 10,000- 2,000= 8,000

Units Started                                                   = 40,000

Add Ending Inventory (8000*40%)                 <u> 3200</u>

Units to account for =                                     <u>51,200</u>

5 0
3 years ago
While an attribute is an inherent quality or characteristic of a product or service, a(n) _____________ is a result or outcome a
o-na [289]

Answer:

benefit

Explanation:

The characteristics define what a product is for, the benefits define the difference that our product has versus the competitive product and the motivators define how the characteristics and benefits of these products will help each individual customer. To say that the product will help a specific and unique customer is to show the real motivator of the purchase, that is, that specific benefit that by itself will make the customer buy the product. It reaches the end that the customer buys products for different benefits for which the product has been created. For example, a chair is used to sit, but at the same time it can be purchased as a decoration item (chair in the middle of a hallway) or used as a staircase in the kitchen.

4 0
3 years ago
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