1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
m_a_m_a [10]
3 years ago
10

Western Inc. purchases a machine for $70,000. This machine qualifies as a five-year recovery asset under MACRS with the fixed de

preciation percentages as follows: year 1 = 20.00%; year 2 = 32.00%; year 3 = 19.20%; year 4 = 11.52%. The firm has a tax rate of 20%. If the machine is sold at the end of two years for $50,000, what is the cash flow from disposal?
Business
1 answer:
Ne4ueva [31]3 years ago
8 0

Western Inc. purchases a machine for $70,000. This machine qualifies as a five-year recovery asset under MACRS with the fixed depreciation percentages- <u>the cash flow from disposal is $46720</u>

Explanation:

Given that  the four-year sale is at $50,000.

we know that the book value of the machine must be established in order to determine if a gain or loss has been incurred at disposal.

The depreciation schedule for the $70,000 machine is: given as

Year 1: $70,000 &times; 0.2000 = $14,000

Year 2: $70,000 &times; 0.3200 = $22,400

<u>Accumulated Depreciation </u>= $14,000 + $22,400 = $36,400

<u>Book Value of machine </u>= $70,000 - $36,400 = $33,600

<u>Gain on disposal is</u> $50,000 - $33,600 = $16,400

Tax on Gain = Gain on disposal &times; Tax rate = $16,400 &

times; 0.20 = 20% of $16,400=20/100*16400=3,280

<u>After-Tax Cash Flow at disposal</u> = $50,000 - $3,280 = $46,720

You might be interested in
You work as an assistant coach on the university basketball team and earn $13 per hour. One day, you decide to skip the hour-lon
Scrat [10]

Answer:

$22

Explanation:

The total cost of skipping practice and going to the carnival will be computed by adding the forfeited earnings from practice plus the carnival admission fee.

Total cost = $13 + $9 = $22.

Therefore, if the practice had not been skipped and the carnival not attended, $22 would have been saved.

6 0
3 years ago
Suppose the price of widgets rises from $5 to $7 and consumption of widgets falls from 25 widgets a month to 15 widgets. Calcula
Tamiku [17]

Answer:

1

Unitary elastic

Elasticity of demand is unitary elastic because the absolute value of elasticity is equal to 1.

Explanation:

Elasticity of demand measures the responsiveness of quantity demanded to changes in price.

Elasticity of demand = percentage change in quantity demanded / percentage change in price

Percentage change in quantity demanded = (25 - 15) / 25 = 0.4 × 100 = 40%

Percentage change in price = ($5 - $7) / $5 = 0.4 × 100 = 40%

Elasticity of demand = 40% / 40% = 1

If coefficient of elasticity is equal to 1, demand is unit elastic. It means that a change in price has an equal efect on the quantity demanded. Quantity demanded has an equal and proportional change to changes in price.

I hope my answer helps you

3 0
3 years ago
The Larson and Gobeli study that compared projects that had been managed in a variety of structural types revealed that construc
adelina 88 [10]

Answer:

oop

Explanation:oop

3 0
3 years ago
When we want to measure wage inflation in the labor market, we use the: Consumer Price Index Product Price Index Employment Cost
dusya [7]

Based on economic indices, when we want to measure wage inflation in the labor market, we use the "<u>Consumer Price Index."</u>

The consumer price index, often referred to as CPI, is conducted by the <u>Bureau of Labor Statistics. </u>

CPI is carefully made to measure the price changes encountered by urban consumers.

It is believed that the urban dwellers formed about 93 percent of the United States population.

Consumer Price Index is used to measure the relationship between wage and inflation.

Hence, in this case, it is concluded that the correct answer is "Consumer Price Index."

Learn more here: brainly.com/question/8416975

5 0
2 years ago
Read 2 more answers
The common stock of ABC, Inc., has a beta of 1.13 and a standard deviation of 21.4 percent. The market rate of return is 12.7 pe
harina [27]

Answer:

The appropriate answer is "13.82%".

Explanation:

Given:

Risk free rate,

R_f=4.10

Beta of stock,

\beta=1.13

Market rate,

= 12.7

Now,

The market risk premium will be:

⇒ R_p = Market \ rate-Risk \ free \ rate

        = 12.7-4.1

        = 8.60 (%)

hence,

The cost of equity will be:

⇒ r=R_f+\beta\times R_p

      =4.10+1.13\times 8.60

      =4.10+ 9.718

      =13.82 (%)

7 0
3 years ago
Other questions:
  • As the demand for goods and services decreases, job growth _____.
    6·1 answer
  • Micromedia company offers computer training seminars on a variety of topics. In the seminars each student works at a personal co
    13·1 answer
  • Agency conflicts between managers and shareholders An agency relationship can degenerate into an agency conflict when an agent a
    7·1 answer
  • On January 1, a company made a sale of $87,500, on credit. If the credit terms were 2/10, n/30, what would be the amount of the
    10·1 answer
  • The balance sheet of Hidden Valley Farms reports total assets of $450,000 and $550,000 at the beginning and end of the year, res
    10·2 answers
  • Account Title Debit Credit
    14·1 answer
  • Net exports equal
    9·1 answer
  • When a ________ is offered on lower-priced items as a sales promotion, the time and trouble of mailing in a proof of purchase to
    7·1 answer
  • Mr. And mrs. Atoll are planning a party for 10 people and want to make sure they have enough soda for everyone to have two bottl
    9·1 answer
  • In marketing and sales communications, it is illegal to use bait-and-switch advertising
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!