Glorious Drinks Co. began the year with net fixed assets of $25,000 and had $27,200 in the account at the end of the year. During the year, the company paid $5,500 in interest and expensed $4,000 in depreciation. The company purchased $10,500 in fixed assets during the year. How many fixed assets did the company sell during the year?

Ans

A chemical company has a total income of 1.62 million per year and total expenses of 716057 not including depreciation. At the start of the first year of operation, a composite account of all depreciable assets shows a value of 1.24 with a MACRS recovery period of 7 years, and a straight-line recovery period of 9.4 years. Thirty-five percent of all profits before taxes must be paid out for income taxes. What would be the reduction in income tax charges for the first year of operation if the MACRS method were used for the depreciation accounting instead of the straight-line method?-

Mainline Clinic, a for-profit business, had revenues of $11.1 million last year. Expenses other than depreciation totaled 67 percent of revenues, and depreciation expense was $1.3 million. All revenues were collected in cash during the year, and all expenses other than depreciation were paid in cash. Mainline must pay taxes at a rate of 39 percent of pretax (operating) income. Now, suppose the company changed its depreciation calculation procedures (still within GAAP) such that its depreciation expense doubled. How would this change affect Mainline’s net income? If net income would go down, enter the amount of the change as a negative number. If net income would go up, enter the amount of the change as a positive number.

A chemical company has a total income of 1.94 million per year and total expenses of 567347 not including depreciation. At the start of the first year of operation, a composite account of all depreciable assets shows a value of 1.39with a MACRS recovery period of 4 years, and a straight-line recovery period of 12.4 years.Thirty-five percent of all profits before taxes must be paid out for income taxes. What would be the reduction in income tax charges for the first year of operation if the MACRS method were used for the depreciation accounting instead of the ?straight-line method

What is company K' s net inancome

In its first year of operations, Martha Enterprises Corp. reported the following information: a. Income before income taxes was $640,000. b. The company acquired capital assets costing $2,400,000; depreciation was $160,000, and CCA was $120,000. c. The company recorded an expense of $155,000 for the one-year warranty on the company's products; cash disbursements amounted to $79,000. d. The company incurred development costs of $77,000 that met the criteria for capitalization for accounting purposes. Development work was still ongoing at year-end. These costs could be immediately deducted for tax purposes. e. The company made a political contribution of $30,000 and expensed this for accounting purposes. f. The income tax rate was 28% and the year 2 tax rate was enacted, at 30%. In the second year, the company reported the following: a. Earnings before income tax were $1,700,000. b. Depreciation was $160,000; CCA was $360,000. c. The estimated warranty costs were $250,000, while the cash…

During the year, Pharr Corporation had sales of $459,000. Costs were $388,000 and depreciation expense was $102,800. In addition, the company had an interest expense of $79.250 and a tax rate of 21 percent. What is the operating cash flow for the year? Ignore any tax loss carry-forward provisions. Multiple Choice $72,733 $77,768 O $15,071

What is company a's net income?

This year, Amalgamated Industries reported depreciation expense of $785,000 on its income statement while reporting Net Fixed Assets of $2,145,000 on its balance sheet. Last year, it reported depreciation expense of $680,000 and net fixed assets of $1,800,000. What was Net Capital Spending this year?