Calculate Lopez Enterprises' gross profit at a CFAT of $2.5 million, $900,000 in expenses, $900,000 in depreciation costs, and a 26.4% effective tax rate
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Calculate Lopez Enterprises' gross profit at a CFAT of $2.5 million, $900,000 in expenses, $900,000 in
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- Concepcion Industries paid $308,000 in federal taxes last year. If business expenses and depreciation charges were $345,000, what were their gross sales for the year?Lynn Construction Company had a gross income of $34,000,000 in tax-year 1,$5,000,000 in salaries, $4,000,000 in wages, $1,000,000 in depreciation expenses, a loan principal payment of $200,000, and a loan interest payment of $210,000.(a) What is the marginal tax rate for Lynn Construction in tax-year 1?(b) What is the average tax rate in tax-year 1?(c) Determine the net income of the company in tax-year 1.A corporation in 2018 expects a gross income of $680,000, total operating expenses of $480,000, and capital investments of $29,000. In addition the corporation is able to declare $53,000 of depreciation charges for the year. The federal income tax rate is 21%. What is the expected taxable income and total federal income taxes owed for the year 2018?
- Material-handling equipment used in the manufacture of grain products (MACRS-GDS 10-year property) is purchased and installed for $180,000. It is placed in service in the middle of the tax year. If it is removed just before the end of the tax year approximately 4.5 years from the date placed in service, determine the depreciation deduction during each of the tax years involved using MACRS-GDS allowances. ———————- Repeat the previous problem if the material-handling equipment is removed just after the tax year, again using MACRS-GDS allowances.Helical Products makes machined springs with elastic redundant elements so that a broken spring will continue to function. The company has gross income of $450,000 with expenses of $230,000 and depreciation of $48,000. Approximate the company’s total taxes for an effective tax rate of 38%.In tax year 1, an electronics-packaging firm hada gross income of $35,000,000, $6,000,000 in salaries, $7,000,000 in wages, $800,000 in depreciationexpenses, a loan principal payment of $200,000, anda loan interest payment of $150,000. Determine thenet income of the company in tax year 1
- On its tax return at the end of the current year Webnet Inc. has $6 million of tax depreciation in excess of depreciation in its income statement. A disclosure note reveals that $1 million of the $6 million difference will reverse itself next year, and the remainder will reverse over the next 4 years. In the absence of other temporary differences, in the balance sheet at the end of the current year Webnet would report ?A manufacturing company makes it a policy that for every new equipment purchased, the annual depreciation cost should not exceed 25% of the first cost at any time without salvage value. Determine the length of serviceAn asset is purchase for P 500,000 with an economic life of 10 years. What is total accumulated depreciation in the first three years using double declining balance method? P 236,000 P 244,000 P 256,000 P 264,000
- Using DBM(declining balance method), the depreciation of a machine on the 5th year and 7th year are P22,893 and P13,503 respectively. What is the original cost of the machine? FINAL ANSWER IN 2 DECIMAL PLACE THANK YOU!Consider the following information for year 1 of a project using equipment that had an initial cost of $100,000, and an estimated salvage value of $10,000 at disposal: BTCF = $16,000MACRS 10-year property classState & Federal Combined Income Tax Rate: 45% What is the ATCF for year 1?Plant Company is contemplating the purchase of a new piece of equipment for $40,000. Plant is in the 20% income tax bracket. Predicted annual after-tax cash inflows from this investment are $14,000, $12,000, $5,000, $13,000 and $1,000 for years 1 through 5, respectively. The firm uses straight-line depreciation with no residual value at the end of five years. The hurdle rate for accepting new capital investment projects is 4%, after-tax. The estimated accounting rate of return (ARR) on this project (rounded to two decimal points), based on the initial investment is: Multiple Choice 2.50%. 3.16%. 6.50%. 9.83%. 11.83%.