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nexus9112 [7]
2 years ago
14

You own some equipment that you purchased four years ago at a cost of $287,000. The equipment is five-year property for MACRS. T

he MACRS rates are .2, .32, .192, .1152, .1152, .0576, for years 1 to 6, respectively. You are considering selling the equipment today for $99,000. Which one of the following statements is correct if your tax rate is 35 percent?
A. The tax due on the sale is $17,357.76.
B. The book value today is $49,406.40.
C. The accumulated depreciation to date is $270,468.80.
D. The taxable amount on the sale is $49,593.60.
E. The aftertax salvage value is $81,707.76.
Business
1 answer:
jasenka [17]2 years ago
6 0

Answer:

E. The aftertax salvage value is $81,707.76.

Explanation:

The computation is shown below:

Accumulated depreciation is

= $287,000 × ( .2 + .32 + .192 + .1152)

= $237.406.40

Now the book value is

= Purchase value - accumulated depreciation

= $287,000 - $237,406.40

= $49,593.60

And, the selling value is $99,000

So after tax salvage value is

= Salvage value - (Salvage value - book value) × tax rate

= $99,000 - ($99,000 - $49,593.60) × 35%

= $81,707.76.

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Federal tax rate = 10%

State tax rate = 4.3%

Social security = 6.2%

Medicare = 1.45%

Total deductions = 21.95%

Amount withheld = 21.95%*6727 = $1476.58

3 0
2 years ago
If the price of Product E decreasing by 2% causes its quantity demanded to increase by 14% and the quantity demanded for Product
Reika [66]

Answer:

B) complements

Explanation:

The cross elasticity shows a relationship between the percentage change in quantity demanded with the percentage change in the price.

In case of the substitute goods, the relation between the price and the quantity demanded is positive that means if the price of goods increased than the quantity demanded is also increased

And, In case of the complementary goods, the relation between the price and the quantity demanded is  negative that means if the price of goods increased than the quantity demanded is decreased

According to the given situation, the most appropriate option is B.

5 0
2 years ago
If three workers are assigned to a task lasting four days, two workers are assigned a task lasting three days, and one worker is
yarga [219]

Three workers per day is minimum resource limit.

<u>Explanation:</u>

Every day he needs maximum of 3 workers, so this can be set of the minimum resource limit for the project.

Thus, the minimum resource limit for the project is -  Three workers per day

All asset make and change demands are assessed against each LimitRange object in the task. In the event that the asset abuses any of the listed requirements, at that point the asset is dismissed. In the event that the asset doesn't set an express worth, and on the off chance that the imperative backings a default esteem, at that point the default esteem is applied to as far as possible is an edge for an asset the executives and helps control asset use. A procedure for overseeing limits takes into consideration the reallocation of assets to various clients or activities as necessities change.

4 0
2 years ago
After nearly 30 years of growth, sales at Ida's company have begun to decline. None of the managers have been able to determine
MariettaO [177]

Answer:

unstructured problem

Explanation:

According to my research on different types of business problems, I can say that based on the information provided within the question this is an example of an unstructured problem. These are defined as problems that do not have an identified cause and can be difficult to identify or solve. Which is what seems to be the case in this scenario since nobody knows why sales have decline.

I hope this answered your question. If you have any more questions feel free to ask away at Brainly.

7 0
2 years ago
You are conducting a discounted cash flow analysis (DCF). You purchased an asset for $400,000 at time point zero. The asset was
andrew11 [14]

Answer: $112000

Explanation:

First, we calculate the book value in year 7 which will be:

= Depreciation × Balance life

= $400,000 × 3/10

= $120,000

Then, the cash flow as a result of the transaction will be:

= Asset sale - (Asset - Book value) × Tax rate

= 110000 - [(110000 - 120000) × 20%]

= 110000 - (-2000)

= 110000 + 2000

= 112000

6 0
2 years ago
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