A company has a unit contribution margin of $50, fixed costs of $15,000 and a target profit of $20,000 after-tax. If the tax rate is 20% the company must sell ________ units in order to earn the target profit
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A company has a unit contribution margin of $50, fixed costs of $15,000 and a target profit of $20,000 after-tax. If the tax rate is 20% the company must sell ________ units in order to earn the target profit.
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- An engineer who made an annual return of 8% after taxes on a stock investment was told by his accountant that this is equivalent to a 12% per year before-tax return. What percentage of taxable income is the accountant assuming will be taken by taxes?A company with a 34% marginal income tax rate is considering the purchase of a $75,000 piece of equipment that is classified as 3-year property in the MACRS depreciation schedule. The equipment will provide the following estimated benefits in Year 1-5. Year Before-Tax Cash Flow 0 −$75,000 1 $10,000 2 $25,000 3 $50,000 4 $15,000 If the company purchases the equipment, how much income tax will it owe in Year 3? Group of answer choices $13,223 $17,000 $25,500 No income tax is owedAn after-market auto parts company sells a machining robot that had been depreciated to zero for $16,000. If the company’s effective tax rate is 36%, the sale will: (a) Increase the company’s taxes by $16,000 (b) Increase the company’s taxes by $5760 (c) Reduce the company’s taxes by $16,000 (d ) Reduce the company’s taxes by $5760
- A tax- and duty-free importation of a 30hp sand mill (for paint manufacturing) cost 360,000. CIP Manila Bank charges, arrester, and brokerage cost 5,000. Foundation and installation cost were 25,000. Other incidental expenses amounted to 20,000. Salvage value of the mill is estimated to be 60,000 after 20 years. Determine the appraisal value of the mill using straight line method of depreciation at the end of 10 years. a.235,000b.450,000c. 342,000d. 125,900An asset with a first cost of $9000 is depreciated using 5-year MACRS recovery. The CFBT is estimated at $10,000 for the first 4 years and $5000 thereafter as long as the asset is retained. The effective tax rate is 40%, and money is worth 10% per year. In present worth dollars, how much of the cash flow generated by the asset over its recovery period is lost to taxes?Given: Before -Tax Cash Flow (BT-CF) for Kal Tech Systems in 2012 for an equipment that will be depreciated using the SL method with salvage value of $10,000. Year 0 1 2 3 4 5 BT-CF -$120,000 32,000 32,000 32,000 32,000 32,000 Market value - $36,000 What is the after-tax return if the company is in the 34% income tax bracket? The incremental tax rate is 34%. Also, it is known that the before-tax return is 16.65% Group of answer choices 9.65% 11.29% 10.16% 10.99%
- Chibitatat Corporation provided the following data for calendar year ending on December 31, 2020. Philippines (php) Abroad (php) Gross Income 4,000,000 2,000,000 Deductions 2,500,000 600,000 Income Tax Paid 150,000 If the corporation is a domestic corporation and it opts to claim the tax paid abroad as deductions from gross income, its income tax payable is:The effective combined tax rate in a firm is 28%. An outlay of $2 million for certain new assets is under consideration. Over the next 9 years, these assets will be responsible for annual receipts of $650,000 and annual disbursements (other than for income taxes) of $225,000. After this time, they will be used only for stand-by purposes with no future excess of receipts over disbursements.(a) What is the prospective rate of return before income taxes?(b) What is the prospective rate of return after taxes if straight-line depreciation can be used to write off these assets for tax purposes in 9 years?(c) What is the prospective rate of return after taxes if it is assumed that these assets must be written off for tax purposes over the next 20 years, using straight-line depreciation?The effective combined tax rate in a firm is 28%. An outlay of $2 million for certain new assets is under consideration. Over the next 9 years, these assets will be responsible for annual receipts of $650,000 and annual disbursements (other than for income taxes) of $225,000. After this time, they will be used only for stand-by purposes with no future excess of receipts over disbursements. (a) What is the prospective rate of return before income taxes? (b) What is the prospective rate of return after taxes if straight-line depreciation can be used to write off these assets for tax purposes in 9 years? (c) What is the prospective rate of return after taxes if it is assumed that these assets must be written off for tax purposes over the next 20 years, using straight-line depreciation? please solve it step by step
- A company wants to set up a new office in an area with a corporate tax rate as follows: 15% of the first $50,000 25% of the next $25,000 34% of the next $25,000 39% for anything over It is estimated that they will have gross revenues of $500,000, total costs of $300,000, $30,000 in allowable deductions, and a one-time start up credit of $8,000. What is the taxable income for the first year, and how much should the company expect to pay in taxes?Identify which of the following items are not included in the calculation of cash flow before taxes, CFBT: life of asset, operating expenses, salvage value, depreciation, initial investment, gross income, tax rate.A corporate expects to receive $36,144 each year for 15 years if a particular project is undertaken. There will be an initial investment of $100,705. The expenses associated with the project are expected to be $7,740 per year. Assume straight-line depreciation, a 15-year useful life, and no salvage value. Use a combined state and federal 48% marginal tax rate, MARR of 8%, determine the project's after-tax net present worth.