Answer:
$144,592
Explanation:
The computation of the after tax salvage value is shown below;
We assume that after 2 years, 52% of the equipment cost would be written off so the remaining basis i.e.
= $319,000 × 48%
= $153,120
The tax loss is
= $153,120 - $140,000
= $13,120
ANd, the tax rate is 35%
So,
= $13,120 × 0.35
= $4,592
Now the after tax salvage value is
= $140,000 + $4,592
= $144,592
For a firm that sells a prestige product, the relationship between price and quantity demanded is a <u>positive direct relationship</u>.
<h3>Why is the relationship between demand and price of prestige products direct?</h3>
The relationship between the demand and price of prestige products is direct because prestige products tend to sell better at high prices than at low prices.
And when the quantity demanded increases, the price tends to increase.
An example of a prestige product is an old car.
Thus, for a firm that sells a prestige product, the relationship between price and quantity demanded is a <u>positive direct relationship</u>.
Learn more about the demand for prestige products at brainly.com/question/6374886
Answer:
the Net Cash flow provided by financing activities is $385,000
Explanation:
The computation of the amount that should be reported as net cash provided or used by financing activities is shown below:
Cash flow from financing activities
Issuance of common stock $247,000
Issuance of bonds payable $522,000
Less: Payment of dividends -$335,000
Less: Purchase of treasury stock -$49,000
Net Cash flow provided by financing activities $385,000
Hence, the Net Cash flow provided by financing activities is $385,000
The definition of commodity is D. Some examples are gold, silver and copper.
Answer:
Gain on sale= $257600
Explanation:
According to IAS 16 (property plant and equipment), the initial measurement of non-current asset is at cost. The cost includes the purchase price and all other directly attributable costs incurred to bring the non-current asset to it's desired location and intended use.
IAS 16 also requires that any subsequent expenditures incurred should either be expensed out if expenditures classify as Revenue expenditure and should be capitalized in the cost of the non-current asset if expenditures classify as Capital Expenditures. In Bill's case, addition of a new room in the existing home structure is an expenditure that classifies as a capital expenditure. Hence cost of the new room will be capitalized in to the cost of the home.
So the book value of Bill's home is = $187000 + $28400
BV of bills home= $215400
Sales proceeds from the sale of the home = $473000
Gain on sale= Sales proceeds - book value
Gain on sale= $473000 - $215400
Gain on sale=257600
