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jolli1 [7]
2 years ago
5

If the depreciable investment is $1,000,000 and the MACRS 5-Year class schedule is: Year-1: 20%; Year-2: 32%; Year-3: 19.2%; Yea

r-4: 11.5%; Year-5: 11.5% and Year-6: 5.8% Calculate the depreciation tax shield for Year-2 using a tax rate of 30%:
Business
1 answer:
alexdok [17]2 years ago
5 0

Answer: C.$96,000

Explanation:

The Depreciation Tax Shield refers to how much in taxes are being saved by the company for depreciating an asset because Depreciation is tax deductible.

Depreciation Tax Shield = Tax Rate * Depreciation Amount for year

= 30% * ( 1,000,000 * 32%)

= 30% * 320,000

= $96,000

By claiming a Depreciation of $320,000 in Year 2, the depreciable asset saved the company $96,000 in taxes.

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Nori is writing an essay to analyze an advertisement for a piece of athletic equipment. What elements should he include in order
makvit [3.9K]

Answer:

B. The advertising techniques used to persuade the viewer

C. Information about competing products and advertisers

D. What tools the advertiser uses to sell the product the purpose of the advertiser’s message

Explanation:

The essay Nori is writing to analyze advertisement for athletic equipment will be more effective if he includes, the three things above.

The advertising techniques used to persuade the viewer :

It's essential to note the advertising techniques that was used to first grab the viewer's attention in the first place, then sell the idea of the product and persuade the viewer to purchase the product. This piece of information is useful to show the success or failure of different advert techniques.

Information about competing products and advertisers:

Including this information is important because one can view the product and advert technique of competitors and make judgements on how they can improve their product in relation to their competitors and how effective the competitor's advert is when compared to yours.

What tools the advertiser uses to sell the product the purpose of the advertiser’s message:

It is necessary to include this point in the essay because it can be analyzed and if its successful, can be further applied or modified if its considered a failure.

Most companies and businesses rely heavily on advertising to increase customer base and sales so if a successful method is found, then it can repeated or modified.

8 0
2 years ago
Read 2 more answers
When a decrease in credit card availability increases the cash people hold, the money-demand curve shifts to the right. As a res
Tju [1.3M]

Answer:

The FED must decrease the price of money (or interest rates), and to do that it will buy US securities. By purchasing securities, the FED will decrease the money supply, lower the interest rates and halt inflation. This is called a contractionary monetary policy.

It can also increase the banking system's required reserve ratio, but besides lowering the interest rates, it will also decrease the supply of credit cards even further, so one action could offset the other. That is why this policy might be inefficient in this specific case.

7 0
2 years ago
Tryst Energy Inc. has an average age of inventory of 65 days, an average collection period of 60 days and an average payment per
zzz [600]

Answer:

The $600,000 amount is required to financing so that the cash conversion cycle can be supported

Explanation:

For computing how much financing is required, first we have to compute the cash conversion payable which is shown below:

Cash conversion cycle = Average age of inventory + Average collection period - average payment period

= 65 + 60 - 65

= 60 days

Now, we have to apply the financing formula which is shown below:

= Firm total annual outlays for operating cycle investment × cash conversion cycle ÷ total number of days in a year

= $3,650,000 × 60 days ÷ 365

= $3,650,000 × 0.16438

= $600,000

Hence, the $600,000 amount is required to financing so that the cash conversion cycle can be supported

4 0
2 years ago
Regional Investment Corporation (RIC) hires Sam, a real estate agent, to locate investment properties for RIC. Sam learns of a w
prisoha [69]

Answer:

A) breached the agent's fiduciary duties to the principal.

Explanation:

To be more specific, Sam broke the agent's the duty of loyalty towards the principal. An agent must act in the best interest of the principal, not on his own best interest. The agent is getting paid for performing a task on behalf of the principal, and by taking advantage of his position, the agent has clearly breached his contract with the principal. Therefore, the principal can sue the agent and recover for damages (tort suit).

7 0
2 years ago
The lake placid town council has decided to build a new community center to be used for conventions, concerts, and other public
Crazy boy [7]
<span>A large community centre would be ideal for the community as it can be used to improve and enrich the lives of its citizens. Building a large facility could create a demand making it an attraction, bringing in outside business into the community which in turn would spin off to other local businesses. On the other hand the building cost incurred and future running cost of the centre may be drastically affected if there is no great demand for such a facility.</span>
3 0
2 years ago
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