An asset used in a four-year project falls in the five-year MACRS class (MACRS schedule) for tax purposes. The asset has an acquisition cost of $8,600,000 and will be sold for $2,180,000 at the end of the project. If the tax rate is 23 percent, what is the aftertax salvage value of the asset? Note: Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.
Q: Which of the following is an advantage of forming a corporation? Question 6 options: Easy to…
A: Being a corporation has a number of benefits, such as less personal liability, simple ownership…
Q: There are 2 workers in one of companies, the company has determine the normal work hours by 8 hours…
A: Direct wages refer to the wages paid to the workers who are directly responsible for manufacturing…
Q: The amount of uncollectible accounts at the end of the year is estimated to be $28,500, using the…
A: Introduction: A provision for doubtful accounts is referred to as a "contra asset" because it lowers…
Q: Ball is a C-Corporation. Ball made operating income (i.e. income before tax) of $3.47 per share last…
A: Money distributed by an S corporation is typically referred to as a distribution and is not taxed.…
Q: 10. The current project earns $100,000 and has costs of $50,000. A ne project would earn $150,000…
A: INTRODUCTION: The cost of a project is defined as the cost of acquiring, constructing,…
Q: Creek Company uses the percentage of credit sales method in determining its bad debt expense. The…
A: Introduction: A bad debt expense is recognized when credit is no longer collectible because a…
Q: inancial Projection CALMS Ice Cream Delight The current business plan is indicated to require a…
A: Financial Statements : These are the statement which tells about the performance/ Solvency and…
Q: Determine if the following items can be found on a Balance Sheet, cash flow statement, or a budget.…
A: Cash Budget An projected cash input and outflow over the budgeted time are shown in a cash budget. A…
Q: Janet sells custom made window blinds. If her raw materials are $15, labor costs are $125, and…
A: Job order costing is the method of computing costs wherein the cost per job is calculated. This…
Q: Net income Preferred dividends Average stockholders' equity Average common stockholders' equity…
A: Return on stockholders' equity = Net incomeAverage stockholders' equity× 100
Q: That answer is incorrect, please try to solve again.
A: The financial performance of a corporation is gauged by free cash flow (FCF). It displays the cash…
Q: An organization manufactures and sells a single product that has a variable cost of $24 per unit and…
A: Introduction: Break-even point is the level of cash necessary to cover the company's entire fixed…
Q: A company manufactures three products using the same production process. The costs incurred up to…
A: By using incremental approach Additional cost of production need to compare with additional revenue…
Q: Question 1 Limonade produced 11,000 cases of powdered drink mix and sold 10,000 cases in April 2010.…
A: In the context of the given question, we are required to compute the total cost per unit, the value…
Q: Morley Manufacturing has notes receivable that have a fair value of P810,000 and a carrying amount…
A: Note receivable is the amount that is due to be received by the company on the note issued. It is an…
Q: Wheeling Incorporated uses the aging of accounts receivable method. Its estimate of uncollectible…
A: Introduction: A bad debt expense is recognized when a receivable is no longer collectible because a…
Q: Copycat manufacturing company is subject to a 30% income tax rate, had the following operating data:…
A: Here in this question, we are required to calculate how much units needs to sell to earn after tax…
Q: The demand function for a certain commodity is given by the equation p = 16 -0.04x. Exercise (a)…
A: 1(a). P(x) =16 - 0.04x, x= 200 P(200) = 16 - 0.04 x 200 = 16 - 8 = 8
Q: ly, and Anya own 10%, pectively, in the FFF Par securities for their $45, rtnership. Review the fo…
A: Partnership refers to the form of agreement between two or more parties who mutually agreed to run…
Q: Finley Company End-of-Period Spreadsheet For the Year Ended December 31 Adjusted Trial Balance…
A: Retained earnings is the amount of money that the entity has retained from the profits of the entity…
Q: Present the journal entry necessary to record each of the following items; assuming King Company…
A: The journal keeps the record for day to day transactions of the business on regular basis The…
Q: and is objecting to an assessment received from SARS
A: In Republic of South Africa South African Revenue Services is the tax…
Q: Instructions On January 2, Cohan Company acquired 44% of the outstanding stock of Sanger Company for…
A: Journal is the first step in the book-keeping of transactions using dual entity concept in…
Q: The following is the adjusted trial balance for Stockton Company. Stockton Company Adjusted Trial…
A: Solution We are provided with the following information to calculate total liabilities Accounts…
Q: According to our authors, define “cost” as it relates to determining the value of inventory. Provide…
A: Value of inventory is the cost associated with the company's inventory at the end of a reporting…
Q: al, trial balance, income sta are important. fit and loss in a business
A: Trial balance refers to a document which reflects all the compiled entries of ledgers into the…
Q: There are 2 workers in one of companies, the company has determine normal work hours by 8 hours in…
A: Methods of Remunerating Labour: The remuneration of the labour is the compensation received by them…
Q: Account Title: Cash Date Dec 1 Dec 2 Particulars Capital Professional Fees Dec 8 Loan Payable Dec 31…
A: The trial balance is prepared to record the final balance of each account of the business in debit…
Q: The year-end financial statements of Collette Inc. reported the following information (in…
A: INTRODUCTION: Days inventory outstanding is the average number of days it takes for a company to…
Q: An increase in the general price level means goods will now cost more. What effect with this have on…
A: Here discuss about the details of the increase in the price level which can be affected in the money…
Q: estimated residual value of $15,000. Compute the depreciation charges for the first two years (2014…
A: Methods of Depreciation Straight Line Depreciation (SLM): Under SLM Method of Depreciation, a fixed…
Q: Instructions Complete this problem as shown. For Question 1, your answer options should be $141,800,…
A: Financial statement means the statement which include the income statement and the balance sheet.…
Q: in error as an item that needs to be included on his Form W-2? a) Personal use of a church-provided…
A: Form W-2 is the form for wages statement and tax statements that are paid in the previous year all…
Q: PROBLEM 3A: Four friends go together to purchase some gold coins as an investment. The total needed…
A: Here asked for multi question we will solve for first question as per guidelines. If you need…
Q: If any of the following occurs when retained profits are increased? Choose one: a. Declaring a cash…
A: its assets, debts, equity (equity) equity, short- and long-term loans, and other related items A…
Q: On Long-term Debt, Equity and Capital Structure Statement I: Participating preferred stock means…
A: Lets understand the basics here. Company issues shares to the public to obtain the capital from…
Q: There are 2 workers in one of companies, the company has determin e normal work hours by 8 hours in…
A: Here discuss about the details of wages payment and its calculation of overtime cost and others as…
Q: Ecco Company sold $136,000 of kitchen appliances with six-month warranties during September. The…
A: Estimated warranty expenses are based on the rate of warranty expense on the sales price. So…
Q: On January 1, Vermont Corporation had 46,700 shares of $10 par value common stock issued and…
A: A journal entry is used to record a business arrangement in a company's accounting records. A…
Q: Capri Company began the current period with a $37,000 credit balance in the K. Capri, Capital…
A: The Question requires us to calculate first the Net Income using Income Summary and then also…
Q: The following are the balances of the different accounts of Malabo Photocopying Center on December…
A: Trial balance contains balances of all the ledgers, including the temporary accounts, in a single…
Q: Firm X is considering the replacement of an old machine with one that has a purchase price of…
A: Cash outflow for a new machine can be calculated by deducting the sum of tax savings on loss on the…
Q: TB MC Qu. 5-118 (Algo) Urban Bloom, Incorporated's books show an ending..... Urban Bloom,…
A: Here we will have to reconcile the company’s ending cash balance with the bank balance using the…
Q: A machine was purchased at an original cost of P3,250,114 with a salvage value of P386,985. The…
A: Depreciation :— Decrease in the value of Assets Due to continuously use of that assets.…
Q: Nexis Corp. issues 2,470 shares of $12 par value common stock at $17 per share. When the transaction…
A: A company can issue its common stock at Par, discount or at premium. When a stock is issued at…
Q: Required information PA9-1 (Algo) Computing Acquisition Cost and Recording Depreciation under Three…
A: Depreciation refers to an accounting method used to allocate the cost of a tangible assets over its…
Q: Mayfield Software has a 2,000-square-foot cafeteria located on the lower level of Building 3, the…
A: Mayfield software has a 2000 square feet cafeteria. The company had been operating the cafeteria now…
Q: Common-size and trend percents for Roxi Company's sales, cost of goods sold, and expenses follow.…
A: The net income for the current year using the trend percentage can be determined by applying the…
Q: whereby a customer who purchases three boxes of chocolates at P200 per box in a single transaction…
A: A.4,000,000 B.7,20,000 3x +.75x =60,000 x = 16,000 So .75 x 16,000 = 12,000 ×200
Q: 1758) Libre, Incorporated has experienced bad debt losses of 5% of credit sales in prior periods. At…
A: Allowance for doubtful accounts - Allowance for doubtful accounts is the provision made by the…
Please help me find the "Aftertax salvage value" using Excel.
Trending now
This is a popular solution!
Step by step
Solved in 4 steps with 2 images
- 6.10 Calculating Salvage Value An asset used in a 4-year project falls in the 5-year MACRS class for tax purposes. The asset has an acquisition cost of $7.6 million and will be sold for $1.4 million at the end of the project. If the tax rate is 21 percent, what is the after tax salvage value of the asset?Problem 6-10 Calculating Salvage Value An asset used in a 4-year project falls in the 5-year MACRS class for tax purposes. The asset has an acquisition cost of $9,600,000 and will be sold for $3,000,000 at the end of the project. If the tax rate is 25 percent, what is the aftertax salvage value of the asset? (MACRS schedule) (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) Aftertax salvage valueProblem An asset used in a four-year project falls in the five-year MACRS class for tax purposes. The asset has an acquisition cost of $6,100,000 and will be sold for $1,300,000 at the end of the project. If the tax rate is 27%, what is the after-tax salvage value of the asset? MACRS Depreciation: 2 3 4 5 6 7 8 3 year class 33.33% 44.45% 14.81% 7.41% 5 year class 20.00% 32.00% 19.20% 11.52% 11.52% 5.76% 7 year class 14.29% 24.49% 17.49% 12.49% 8.93% 8.92% 8.93% 4.46%
- man.2 An asset used in a 4-year project falls in the 5-year MACRS class for tax purposes. The asset has an acquisition cost of $8,900,000 and will be sold for $2,440,000 at the end of the project. If the tax rate is 23 percent, what is the aftertax salvage value of the asset? (MACRS schedule) (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)Ch 6. Seeing Red has a new project that will require fixed assets of $935,000, which will be depreciated on a 5-year MACRS schedule. The annual depreciation percentages are 20.00 percent, 32.00 percent, 19.20 percent, 11.52 percent, and 11.52 percent, respectively. The company has a tax rate of 28 percent. What is the depreciation tax shield for Year 3? Round to the nearest cent and format answer as "XX,XXX.XX"Problem 12-25 (Algo) MACRS depreciation and net present value [LO12-4] The Summit Petroleum Corporation will purchase an asset that qualifies for three-year MACRS depreciation. The cost is $390,000 and the asset will provide the following stream of earnings before depreciation and taxes for the next four years: Use Table 12-12 Year 1 Year 2 Year 3 Year 4 $ 206,000 254,000 86,000 78,000 The firm is in a 40 percent tax bracket and has a cost of capital of 12 percent. Use Appendix B for an approximate answer but calculate your final answer using the formula and financial calculator methods. a. Calculate the net present value. Note: Negative amount should be Indicated by a minus sign. Do not round Intermediate calculations and round your answer to 2 decimal places. Net present value es b. Under the net present value method, should Summit Petroleum Corporation purchase the asset? Yes O No
- 13 the cost of a property is estimated to be 3500000 and the sales price quoted to be 4500000. An 18% downpayment is made by the buyer. The remainder is to be received over a period of 8 years. Furthermore, there is doubt about the buyer's ability to pay. How much profit should be recognized attributable to the downpayment if: 1) the installment method is used and 2) the cost recovery method is useduiz Instructions Question 26 Your company, RMU Inc., is considering a new project whose data are shown below. Under the new tax law, the equipment used in the project is eligible for 100% bonus depreciation, so it will be fully depreciated at t = 0. What is the project's Year 1 cash flow? Sales revenues $26,750 Operating costs $12,000 Tax rate 25.0% O $2,350 $4,345 $16,820 O $1,063 $18,125 « Previous Next > 80 888 esc F1 F2 F3 F4 F5 F6 F7 F8 F9 F10 # $ % & 1 2 3 4 5 6 8 Q W E R Y ab A S D G J K Jock N M H ntrol option command comma I LL NQUESTION 8 The MLA investments purchased a machine a few years ago. The original cost of the machine was $140000. The machine is depreciated to an assumed salvage value of zero using MACRS five-year class schedule. However, after using the machine for four years, the company decided to sell it for a price of $55000. If the company's marginal tax rate is 21 percent, what is the after-tax cash flow associated with this transaction? The depreciation rates from year 1 to 6 are 20% ,32%, 19.2%, 11.52%, 11.52%, and 5.76 percent, respectively.
- QUESTION 9 The MLA investments purchased a machine a few years ago. The original cost of the machine was $140000. The machine is depreciated to an assumed salvage value of zero using five-year straight line depreciation method. However, after using the machine for three years, the company decided to sell it for a price of $80000. If the company's marginal tax rate is 21 percent, what is the after-tax cash flow associated with this transaction?es Problem 12-27 (Algo) MACRS depreciation and net present value [LO12-4] Universal Electronics is considering the purchase of manufacturing equipment with a 10-year midpoint in its asset depreciation range (ADR). Carefully refer to Table 12-11 to determine in what depreciation category the asset falls. (Hint: It is not 10 years.) The asset will cost $220,000, and it will produce earnings before depreciation and taxes of $72,000 per year for three years, and then $35,000 a year for seven more years. The firm has a tax rate of 25 percent. Assume the cost of capital is 14 percent. In doing your analysis, if you have years in which there is no depreciation, merely enter a zero for depreciation. Use Table 12-12. Use Appendix B for an approximate answer but calculate your final answer using the formula and financial calculator methods. a. Calculate the net present value. Note: Do not round intermediate calculations and round your answer to 2 decimal places. Net present value b. Based on the…shj.8 A company is considering the purchase of a new production machine and is not sure whether the project fulfills its investment objective. The company requires that all investments must have a positive net present value (NPV). The machine costs $100,000 and will be depreciated for tax purposes on a straight-line basis over its useful life of five years. The machine has a $0 salvage value. The project will generate $30,000 of pretax operating cash inflow annually. The company has a 25% effective income tax rate and uses a 10% discount rate for investment projects. Which of the following represents the NPV of the project? Select one: a. $(14,707) b. $(33,661) c. $13,724 d. $4,246