On May 11, 2018, your calendar year firm pays $6,000 for a computer server, its only asset purchase for the year, and estimates that the server will have a salvage value of $500. If no Sec. 179 deduction is taken and you elect out of 100% bonus, what is your firm’s maximum 2018 deduction for depreciation? $2,000 $1,200 $1,100 $869

Please answer fast

4

What will be the annual cash outflows for Mimi Inc. if it leased a milling machine for $8, 200 per year for 5 years. Assume that the new machine cost $ 42,000 and will depreciate on a straight line basis over the 5 years and that Mimi has a tax rate of 32 percent. Question 15Select one: a. - $5,576 b. $42,000 C. -$8,264 d. $33,800 e. - $2,688

C12. A contractor gets revenue of $30,000 every year on the below earthmoving contract. Buy a heavy-duty truck for $35,000, salvage is expected to be $3000 at the end of the vehicle’s 5-year MACRS depreciable life. Maintenance is $1000/year, monthly operating expenses are $1000. Is it worth signing the contract? Justify. The expected RoR is 9%.

A firm wishes to bid on a contract that is expected to yield the following after-tax net cash flows at the end of each year: Year Net Cash Flow 1   $3,000   2   10,000   3   9,000   4   8,000   5   4,000   6   6,000   7   4,000   8   -$1,500   To secure the contract, the firm must spend $50,000 to retool its plant. This retooling will have no salvage value at the end of the 8 years. Comparable investment alternatives are available to the firm that earn 11 percent compounded annually. The depreciation tax benefit from the retooling is reflected in the net cash flows in the table. Use Table II to answer the questions. Compute the project's net present value. Round your answer to the nearest dollar. NPV: $   Should the project be adopted? The project  be adopted. What is the meaning of the computed net present value figure? Round your answer to the nearest dollar. The value of the firm, and therefore the shareholders’ wealth, is  by $   as a result of…

ff1

Economics Can you solve it manually, please.? A bank purchased a new computer information system which cost them $350,000. Suppose this is considered a 5-year MACRS property. The system can be salvaged for about $40,000 at the end of ten years. (a) What are the annual depreciation values for tax purposes over the system's useful life? (b) What is its book value at the end of year 2 for tax purposes?

Job-order costing is used to calculate the cost of producing a unique or custom-made product, whereas process costing is used for the production of standardized products. Job-order costing assigns costs to each job, while process costing assigns costs to each process or department. Job-order costing uses job cost sheets to accumulate costs for each job, while process costing uses departmental production reports to accumulate costs for each process. Job-order costing can have high variation in production costs per unit, while process costing typically results in more stable production costs per unit. Job-order costing is more suitable for small production runs, while process costing is more suitable for large-scale production. Job-order costing requires a higher level of record-keeping and tracking of costs for each job, while process costing requires tracking of costs for each department or process.

Problem: A leasing company is planning to purchase an asset for $15,000 with a 6-year life and assume no salvage value. The company can depreciate the asset over its useful life using a straight-line depreciation method. The company has just issued five-year notes at an interest rate of 10% per year. Tax rate = 21%. Maintenance (and other) costs = $1,350 per year for years 1-4, $2,200 per year for years 5-6. What is the after-tax break-event rent for this lease if payments occur at the beginning of the periods? (Hint: Use an excel sheet to solve this problem. You need to draw the lease cash flow table.)