how much tax did Pot Corp. pay?
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Flatland Corp. harvested potatoes at a cost of FC 1,000,000 and sold them to Pot Corp. for FC 2,500,000. Pot Corp. sold the potatoes to its customers and received FC 4,000,000. If the national VAT is 20%, how much tax did Pot Corp. pay?
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- Ms. T. Potts, the treasurer of Ideal China, has a problem. The company has just ordered a new kiln for $450,000. Of this sum, $55,000 is described by the supplier as an installation cost. Ms. Potts does not know whether the company will need to treat this cost as a tax-deductible current expense or as a capital investment. In the latter case, the company could depreciate the $55,000 straight-line over five years. How will the tax authority’s decision affect the after-tax cost of the kiln? The tax rate is 25%, and the opportunity cost of capital is 5%. (Do not round intermediate calculations. Round your answers to the nearest whole dollar amount.)The truck manufacturer purchased $2,000 in intermediate goods produced this year by domestic firms and $5,000 from foreign firms to make 2 trucks. It sold the first truck for $21,000 to a domestic retailer who sold it to Mohd for $26,000. It sold the second truck to the domestic government for $28,000. Assuming everything happened this year, for these two trucks, what was the the manufacturer's value added?Pebble Co. recently sold a used machine for P40,000. The machine had a book value of P60,000 at the time of the sale. What is the after-tax cash flow from the sale, assuming the company's marginal tax rate is 20 percent?
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- A computer-controlled milling machine will cost Ajax Manufacturing $65,000 to purchase plus $4700 to install. (a) If the machine would have a salvage value of $6600 at EOY 20, how much could Ajax charge annually to depreciation of this equipment? Ajax uses straight-line depreciation. (b) What is the book value of the machine at EOY 3? (c) Ajax Manufacturing earns a net profit before tax (also called a taxable income) of $28,800,000. How much tax would Ajax owe for this year? please solve it step by stepSadik Industries must install $1 million of new machinery in its Texas plant. It can obtain a 6-year bank loan for 100% of the cost at a 14% interest rate with equal payments at the end of each year. Sadik’s tax rate is 25%. The equipment falls in the MACRS 3-year class. (The depreciation rates for Year 1 through Year 4 are equal to 0.3333, 0.4445, 0.1481, and 0.0741.)Alternatively, a Texas investment banking firm that represents a group of investors can arrange a guideline lease calling for payments of $320,000 at the end of each year for 3 years. Under the proposed lease terms, the Sadik must pay for insurance, property taxes, and maintenance.Sadik must use the equipment if it is to continue in business, so it will almost certainly want to acquire the property at the end of the lease. If it does, then under the lease terms, it can purchase the machinery at its fair market value at Year 3. The best estimate of this market value is $200,000, but it could be much higher or lower under…Ganyao's firm, InvesTek, manufactures silicon wafers for the high-tech industry. His firm just paid $7,600,000 for a piece of equipment that's classified as a 3-year asset according to MACRS. His firm plans to use the equipment for a project that lasts 4 years, and then sell the equipment for $655,000. InvesTek's corporate tax rate is 35%. MACRS depreciation rates are as follows: Year 1: 33.33%, Year 2: 44.45%, Year 3: 14.81%, and Year 4: 7.41%. What is the net after-tax salvage cash flow from selling this equipment at the end of the project? selling price= net book value= gain/loss= taxes= net cash flow=
- A chip manufacturer makes video gaming chip that can be sold for $50. The chip material cost is $15 for each chip. The operations costs of the chip manufacturer (administration etc.) is $100000. The chip manufacturing machinery costs $500000 that is depreciated over 10 years to a salvage value of zero. a) What is the accounting breakeven level of sales in terms of number of chips sold? b) b. What is the NPV breakeven level of sales assuming a tax rate of 35%, 10-year project life and a discount rate of 12%.The Fleming Company, a food distributor, is considering replacing a filling line at its Oklahoma City warehouse. The existing line was purchased several years ago for $600,000. The line’s book value is $200,000, and Fleming management feels it could be sold at this time for $150,000. A new, increased capacity line can be purchased for $1,200,000. Delivery and installation of the new line are expected to cost an additional $100,000. Assuming Fleming’s marginal tax rate is 40%, calculate the net investment for the new line.Genesis Corporation want to purchase a piece of machinery for $150,000 that will cost $20,000 to have it delivered and installed. Based on past information, they believe they can sell the machinery for $25,000 in 5 years. The company’s marginal tax rate is 34%. If the applicable CCA rate is 20% and the required return on this project is 15%, what is the present value of the CCA tax shield?