During the month of August, a mining company has a gross income of P3,200,000 from the production of nickel. All expenses, excluding depletion expenses for this month
Q: A plant erected to manufacture socks has a first cost of P9,371,311 with a salvage value of x% of…
A: Disclaimer- “Since you have asked multiple question, we will solve the first three question for you…
Q: Suppose you currently earn taxable income of $100,000 per year. You are subject to an MTR of 50…
A: ATR = Average tax rate MTR = Marginal tax rate
Q: asset that is book-depreciated over a 5-year period by the straight line method has C3 = P 2,800,000…
A: The formula for straight line SL depreciation is given below: d = (P-S)/n Were, P = initial cost, n…
Q: The initial cost of a paint sand mill, including its installation is P800,000. The BIR approved life…
A: Annual depreciation =Initial cost - salvage value + dismantal costyears=800000-50000+1500010=76500…
Q: UCCU is an instant coffee manufacturer in the sweet potato country. It imports coffee beans worth…
A: C= Consumer spending on goods and services. C=$300,000 I=$154238 G=$100,000 X=$500,000 M=$50,000…
Q: Consider the depreciation for a $10,000 investment with $1,000 salvage value and a recovery period…
A: The current tax depreciation scheme in the United States is the Modified Accelerated Cost Recovery…
Q: A crane rental company has acquired a new heavy-duty crane for $280,000. The company calculates…
A: here we calculate the depreciation rate per rental so the calculation of the following as follow-
Q: EFG Corporation ("EFG") is a Canadian-controlled private corporation and has correctly calculated…
A: 1.Income tax payable is actually a form of profile in the existing obligations segment of a…
Q: An artificial deductible operating expense designed to compensate mining organizations for…
A: Deflation:- A drop in the average level of prices of commoditiesis referred to as deflation.…
Q: Western Processors Ltd manufactures and distributes a wide range of consumer products from its…
A: A good business is all about optimizing all of your efforts and resources to their best potential,…
Q: Suppose that Adhvait's Plastic Pellet company has a depreciation rate of 0.075 and a marginal…
A: The marginal product of Capital: The marginal product of capital is defined as the amount of…
Q: A factory has decided to purchase some new equipment for P650, 000. The equipment will be kept for…
A: Calculation of depreciation rate: Depreciation rate = 100%Useful life ×2=100%10x 2=20%
Q: A granary has two options for a conveyor used in the manufacture of grain for transporting, filling,…
A: Given information Two Conveyor Conveyor 1: Initial investment =$75000 Operational cost=$17000…
Q: Equipment bought for Php. 60,000 is expected to last for 30 years. If the book value after 20 years…
A: Depreciation refers to the normal wear and tear of a capital asset. It is a fall in the value of an…
Q: Assume the capital stock depreciates at a rate of 15% per year. If the capital stock started the…
A: Given information: Capital stock depreciates at a rate of 15% per year Capital stock started the…
Q: Advise ABC Pty Ltd and Liberty Pty Ltd on the tax implications of the following arrangement. a. ABC…
A: Party Involved : 1. ABC Pty ltd (Owner of Property) 2. Liberty Pty ltd (Use of Property)
Q: Find net domestic capital formation if depreciation is $88 million and the value.of gross domestic…
A: We are given that:- Depreciation = $88 million Gross domestic capital formation = $300 million We…
Q: ABC Company makes its policy that for every new piece of equipment purchased, the annual…
A: Below is the given value: The annual depreciation should not be more than = 25% Salvage value = 0
Q: Assume the capital stock depreciates at a rate of 10% per year. If the capital stock started the…
A: Given information: Capital depreciates at a rate of 10% per year The capital stock started the year…
Q: What would be the value of depreciation if Gross domestic capital formation is $33000 and net…
A: According to the above mentioned question, we have Gross domestic capital formation = $33,000 Net…
Q: The annual depreciation of P25,000 has been reserve for a machine for a machine using straight line…
A:
Q: K/N = 27 this year, and K/N = 30 last year, then saving is __ depreciation this year. greater than…
A: Steady state level is reached where the per capita variables do not change. The consumption per…
Q: Show the complete solution for the following: 1. The Saudi Arabian Oil Refinery developed an oil at…
A: Half million barrel = 500000 barrels of oil Initial cost = $500,000,000 Oil contain in refinery…
Q: Answer the following problems on clean sheets of paper. Show your solution. A company purchased a…
A: We have Machine cost = 15000 Sales tax and shipping cost = 1000 Nonrecurring installation cost =…
Q: A granary has two options for a conveyor used in the manufacture of grain for transporting, filling,…
A: Given information Two Conveyor Conveyor 1: Initial investment =$80000 Operational cost=$17500…
Q: The Old Hickory Furniture Company manufactures chairs on the basis of the BOM shown below. At the…
A: Dear Student as you have posted multiple sub-parts in a question but as per policies and guidelines…
Q: An asset is purchased for P350,00. The salvage value in 18years is P65,000/ what are the…
A: Depreciation and amortisation are calculated on a straight line basis. It's also known as straight…
Q: A machine costing P480,000 has a life expectancy of 15 years with a salvage value of 10% of the…
A: Machine initial cost=P480000 Life expectancy=15 years Salvage value= 10% of initial cost
Q: A granary has two options for a conveyor used in the manufacture of grain for transporting, filling,…
A: Given information Two Conveyor Conveyor 1: Initial investment =$90000 Operational cost=$14000…
Q: The first coat of a road laying machine is Php 8,000,000. Its salvage value after five years is Php…
A:
Q: Please help!
A: 1.Total manufacturing time:Total manufacturing time can be calculated as follows:
Q: Which of the following is not true about depreciation? a. Depreciation is not a cash flow b. To be…
A: Depreciation: - depreciation is a process of a systematic allocation of the cost of an asset over…
Q: yPhone 1 has a price of Php 50,000.00 five years ago, today yPhone 2 with newer technology has been…
A: Answer is given below
Q: The first cost of a machine is Php 1,800,000 with a salvage value of Php 300,000 at the end of its…
A:
Q: An asset is purchased for 9,000. It estimated economic life is for 10 years after which it will be…
A: Cost=9000 Scrap value=1000
Q: A corporation in 2018 expects a gross income of $430,000, total operating expenses of $330,000, and…
A: The U.S. government personal expense is a duty required by the Internal Revenue Service (IRS) on the…
Q: An asset is purchased for P 9,000.00. Its estimated economic life is 10 years after which it will be…
A: DEPRECIATION MEANS A REDUCTION IN THE VALUE OF ASSET OVER TIME. UNDER SYD METHOD THE DEPRECIATION…
Q: A granary has two options for a conveyor used in the manufacture of grain for transporting, filling,…
A: Annual worth is calculated by present value of annuity formula. Present value of cash flows from the…
Q: If government tax policy requires Bill to pay $20,000 in taxes on annual income of $200,000 and Paul…
A: Given: Amount that Bill has to pay as per the tax policy = $20000 His Annual Income = 200000 Amount…
Q: Techware Incorporated is considering the introduction of two new software products to the market.…
A: Techware Incorporated had four choices present: either none of the two items, present item 1,…
Q: deposit of P 110,000 was made for 31 days. The net interest after deducting 20% withholding tax is…
A: A) Given P = 110,000 Tax was 20% Time = 31 days Required rate of interest annually. => Total…
Q: The gross domestic capital formation is $67,000 and depreciation in the same year is $2,000…
A: According to the above given question, we have:- Gross domestic capital formation = $67,000…
Q: Depreciation equals ________. a. capital minus gross investment b. capital minus net investment c.…
A: The decrease in value of capital asset over time period is know as the depreciation.
Q: for P10,000 and plans to keep it for 20 years. If the salvage value is zero at the end of the 20th…
A: *Answer:
Q: P 120,000,00. Its estimated life is 10 years, after
A: *Answer:
Q: What will be the depreciation rate if GNP at MP is $12,000 and the NNP at MP is $6700
A: The data presented in the question above is:- Gross national product at Market price = $12000 Net…
Q: A company uses a total of four different raw materials R1, R2, R3 and R4 in its two production…
A: The production refers to the phenomenon, or an activity which involves the use of the raw materials,…
Q: Zhao Co. has fixed costs of $378,200. Its single product sells for $179 per units, and variable…
A: Variable prices change primarily based totally on the quantity of output produced. Variable prices…
Q: Carrolton Oil and Gas, an independent oil and gas producer, is approved to use a 20% of gross income…
A: Suppose, the usage is 20% of gross depletion allowance, the write- off last year was $700,000 and…
Step by step
Solved in 2 steps
- Ford Territory Titanium costs ₱1.23 million today. You have found a way to earn 15% tax free on an “auto purchase account”. If you expect the cost to increase by 10% per year, how much would you need to deposit in the “auto purchase account” to provide for the purchase of the auto 5 years from now? If the Consumer Price Index was 208.5 on January 1, 2010, and 10 years after it was 516.71. What was the inflation rate, compounded annually, over that 10-year period? If that rate continues to hold for the next 10 years, what Consumer Price Index can be expected on January 1, 2030?Your company has been doing well, reaching $1.18 million in earnings, and is considering launching a new product. Designing the new product has already cost $505,000. The company estimates that it will sell 815,000 units per year for $2.91 per unit and variable non-labor costs will be $1.16 per unit. Production will end after year 3. New equipment costing $1.18 million will be required. The equipment will be depreciated to zero using the 7-year MACRS schedule. You plan to sell the equipment for book value at the end of year 3. Your current level of working capital is $301,000. The new product will require the working capital to increase to a level of $384,000 immediately, then to $406,000 in year 1, in year 2 the level will be $360,000, and finally in year 3 the level will return to $301,000. Your tax rate is 21%. The discount rate for this project is 10.2%. Do the capital budgeting analysis for this project and calculate its NPV. Note: Assume that the equipment is put into use in year…Company ABC purchased equipment worth Euros from an Italian co. at the beginning of the year. The transaction was denominated in Euros. The exchange rate at the time was US = 1 Euro. However, due to a weaker economy, the dollar strengthened against the Euro resulting in an exchange rate of US = 1 Euro at year-end. a) Determine the transaction gain/loss that Company ABC will report in its year-end income statement. b) Determine the transaction gain/loss that the Italian company will report in the year-end income statement.
- Apple is selling 30,000 units in Europe at an average price of 1500 euros per unit. Both the spot and forward rates are $1.20/euro. The cost of each unit in dollars is $1300 per unit. The elasticity of demand for Apple computers in Europe is Euro= 1.5. Now consider a depreciation of Euro (relative to US $) from $1.20/ euro to $1.08/Euro and assume zero passthrough. What is Apple's exposure? a. $45 mn b. $20 mn c. Euro 45 mn d. Euro 20 mnwhat will be the value of the net domestic product at the factor cost if the gross domestic product at the factor cost is $ 7766 and the depreciation is $ 1101Ms. T. Potts, the treasurer of Ideal China, has a problem. The company has just ordered a new kiln for $400,000. Of this sum, $50,000 is described by the supplier as an installation cost. Ms. Potts does not know whether the Internal Revenue Service (IRS) will permit the company to treat this cost as a tax-deductible current expense or as a capital investment. In the latter case, the company could depreciate the $50,000 straight-line over 5 years. The tax rate is 30% and the opportunity cost of capital is 5%. What is the present value of the cost of the kiln if the installation cost is treated as a separate current expense? What is the present value of the cost of the kiln if the installation cost is treated as a part of the capital investment? Note: Round your answer to the nearest whole dollar amount.
- The country of Namibia imposes an 38% allowance for extraction of uranium. B3Gold Namibia company who extract soil with uranium deposits has a gross income of $45M in 2001. That same year, a taxable income of 34.2M except for depletion was produced by the company of B3Gold Namibia for mining the radioactive material. What is the allowable depletion for that year?Your company has just signed a three-year nonrenewable contract with the city of New Orleans for earthmoving work. You are investigating the purchase of heavy construction equipment for this job. The equipment costs $209,000 and qualifies for five-year MACRS depreciation. At the end of the three-year contract, you expect to be able to sell the equipment for $74,000. If the projected operating expense for the equipment is $64,000 per year, what is the after-tax equivalent uniform annual cost (EUAC) of owning and operating this equipment? The effective income tax rate is 25%, and the after-tax MARR is 11% per year. Click the icon to view the GDS Recovery Rates (r) for the 5-year property class. Click the icon to view the interest and annuity table for discrete compounding when the MARR is 11% per year. The after-tax equivalent uniform annual cost is $ (Round to the nearest dollar.) More Info GDS Recovery Rates (k) 5-year Property Class 0.2000 0.3200 0.1920 0.1152 0.1152 0.0576 Year 1 2 3…Sharp Inc., a wholly Ghanaian owned company specializes in the production of hand sanitizers branded as Quin. The company has branches in all the regions in Ghana with its head office located at Cape Coast. It employs 1,200 people and pays an average of GH¢ 550.00 as income tax to the government of Ghana on a monthly basis. Suppose that seven thousand, eight hundred and twenty (7,820) units of Quin are produced and supplied by Sharp Inc. but the quantity demanded for Quin is eight thousand (8,000) units. Ceteris Paribus, a GH¢ 20.00 change in the price of Quin results in a change in quantity demanded for and supplied of 4 and 5 units, respectively. [Hint: change in X due to change in Y is given as Ax]. Given the above information: a) Determine the equilibrium price and equilibrium quantities of Quin. b) Suppose the Government of Ghana in the wake of the COVID-19 pandemic grants a subsidy of GHs 4.50 on each Quin produced. Compute the new equilibrium price and quantities of Quin. c)…
- China Oriental sells merchandise for P6325 (12% VAT included) to a corporate client. The markup on selling price is 25%. Determine the cost price of the merchandise (Insert your answer to 3 decimal places, with no units).Calculate depreciation if Gross domestic capital formation is $400 and net domestic capital formation is $369Company XYZ operates in the mining industry and extracts a non-renewable resource. The company is eligible for a depletion allowance of 10% on its gross income from the resource extraction. In the current year, the company generated a gross income of $500,000 from the resource. Calculate the depletion allowance for Company XYZ.