Questions
A company is considering a $100,000 piece of equipment after securing a 3 year service contract....
A company is considering a $100,000 piece of equipment after securing a 3 year service contract. This equipment falls into the MACRS five year class and will be sold after three years for $42,000. The addition of this equipment will have no effect on revenues, but it is expected to save the company $45,000 per year in before-tax operating costs. The firm's marginal tax rate (federal plus state) is 40%, and its after-tax MARR is 12%.
Show if this investment is economically justifiable or not.
In: Economics
The Bookbinder Company has made $300,000 before taxes during each of the last 15 years, and it expects to make $300,000 a year before taxes in the future.
Problem 2-13
Loss Carryback and Carryforward
The Bookbinder Company has made $300,000 before taxes during each of the last 15 years, and it expects to make $300,000 a year before taxes in the future. However, in 2016 the firm incurred a loss of $725,000. The firm will claim a tax credit at the time it files its 2016 income tax return, and it will receive a check from the U.S. Treasury. Show how it calculates this credit, and then indicate the firm's tax liability for each of the next 5 years. Assume a 35% tax rate on all income to ease the calculations. Enter your answers as positive values. If an amount is zero, enter "0".
| Prior Years | 2014 | 2015 |
| Profit earned | $ | $ |
| Carry-back credit | ||
| Adjusted profit | $ | $ |
| Tax previously paid (35%) | ||
| Tax refund: Taxes previously paid | $ | $ |
Total check from U.S. Treasury $
Firm's tax liability
2017: $
2018: $
2019: $
2020: $
2021: $
In: Finance
The Bookbinder Company has made $250,000 before taxes during each of the last 15 years, and it expects to make $250,000 a year before taxes in the future.
Loss Carryback and Carryforward
The Bookbinder Company has made $250,000 before taxes during each of the last 15 years, and it expects to make $250,000 a year before taxes in the future. However, in 2016 the firm incurred a loss of $550,000. The firm will claim a tax credit at the time it files its 2016 income tax return, and it will receive a check from the U.S. Treasury. Show how it calculates this credit, and then indicate the firm's tax liability for each of the next 5 years. Assume a 40% tax rate on all income to ease the calculations. Enter your answers as positive values. If an amount is zero, enter "0".
| Prior Years | 2014 | 2015 |
| Profit earned | $ | $ |
| Carry-back credit | $ | $ |
| Adjusted profit | $ | $ |
| Tax previously paid (40%) | $ | $ |
| Tax refund: Taxes previously paid | $ | $ |
Total check from U.S. Treasury $
Firm's tax liability
2017: $
2018: $
2019: $
2020: $
2021: $
In: Accounting
For the titration of 75 mL of 0.10 M acetic acid with 0.10 M NaOH, calculate...
For the titration of 75 mL of 0.10 M acetic acid with 0.10 M NaOH, calculate the pH. For acetic acid, HC2H3O2, Ka = 1.8 x 10-5. (a) before the addition of any NaOH solution. (b) after 25 mL of the base has been added. (c) after half of the HC2H3O2 has been neutralized. (d) at the equivalence point.
In: Chemistry
Determine the pH during the titration of 34.9 mL of 0.331 M triethylamine ((C2H5)3N , Kb...
Determine the pH during the titration of 34.9
mL of 0.331 M triethylamine
((C2H5)3N ,
Kb = 5.2×10-4) by
0.331 M HNO3 at the
following points.
(a) Before the addition of any HNO3.
_________
(b) After the addition of 13.6 mL
of HNO3
_____
(c) At the titration midpoint ______
(d) At the equivalence point _______
(e) After adding 52.0 mL of
HNO3 ________
In: Chemistry
Jackson & Sons uses packing machines to prepare its products for shipping. One machine costs $397,500...
Jackson & Sons uses packing machines to prepare its products
for shipping. One machine costs $397,500 and lasts 5 years before
it needs replaced. The machine will be worthless after the 5 years.
The annual after-tax operating cost per machine is $38,400.
What is the equivalent annual cost of one machine if the
required rate of return is 16 percent?
In: Finance
Calculate the pH at the following intervals if 30mL 0.20M of formic acid, HCHO2 is titrated...
Calculate the pH at the following intervals if 30mL 0.20M of formic acid, HCHO2 is titrated with 0.15M NaOH. For HCHO2 Ka = 1.8 x 10-4
a) before any NaOH has been added
b) after a total of 15.0mL of NaOH has been added
c) at the equivalence point
d) after a total of 50.0mL of NaOH has been added.
In: Chemistry
The switch in the figure below is open for t<0 and is then thrown closed at...
The switch in the figure below is open for t<0 and is then thrown closed at time t = 0. Assume R = 8.00 2, L = 8.00 H, and E = 15.0 V. Find the following as functions of time thereafter. Assume current is in A and time is in s. Use the following as necessary: t.)
(a) the current in the inductor
(b) the current in the switch
In: Physics
Which of the following accounts is not closed at the end of an accounting cycle? Multiple...
Which of the following accounts is not closed at the end of an accounting cycle?
Multiple Choice
-
A. Revenues
-
B. Retained earnings
-
C. Dividends
-
D. Expenses
In: Accounting
In an imaginary closed economy, the market for loanable funds is in equilibrium in which the...
In an imaginary closed economy, the market for loanable funds is in equilibrium in which the government is running a balanced budget. In equilibrium, GDP, consumption expenditure and government expenditure are $4,000 million, $2,500 million and $1,000 million, respectively.
a. Calculate private saving, public saving, taxes and investment.
b. In order to finance for additional expenditures in the future, suppose the government is running a budget deficit in which it raises fund through selling government bonds in the open market. Explain the effects of this policy on the real interest rate and investment.
c. If the imaginary economy is a closed economy, what is the relationship between domestic investment and national saving?
d. If the imaginary economy has a reform, and then changes to an open economy, what is the new relationship between domestic investment and national saving?
In: Economics