In year zero, a corporation acquires P300,000 worth of equipment. It decides to utilize straight line depreciation over the equipment's estimated 30-year life. The current interest rate is 14%. What is the current value of the depreciation tax shield if the company's overall tax rate is 50%?

Q: tch the type of risk with the related definition. A. Detection risk B. Control risk C. Inherent risk...

A: Solution:- 1. The probability that an auditor will give an inappropriate opinion on financial statem...

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A: Step 1: Net increase in Cash  = Ending cash - Beginning Cash. = $133000 - $77000 = $56000

Q: Austin Company reports the following components of stockholders' equity on January 1. Common stock-$...

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Q: NSWER IS LETTER B. 9,000. PLEASE PROV

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A: Stock Price = D1/Ke-g

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A:

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Q: Fabricating Finishing P1,590 P580

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Q: solve the question with explanation asap

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A: Fixed cost is the cost that doesn't change with the change in the output or production level.

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Q: Help me answer the letter d and c with solution thank you

A: Degree of operating leverage = Contribution/EBIT Degree of Financial leverage = EBIT/EBT

Capital Gain

Any capital asset when sold can give the seller a higher or lower price from its purchase price leading to a capital gain or capital loss. The time period of holding an asset is decided based on if it is a long term or short-term capital gain. On that basis, the rate of taxation is decided if it is 20%, 15% or according to the tax brackets. The rate of taxation differs in the case of equity or debt, whether long or short term. The capital gain can be adjusted from capital loss to arrive at a net capital gain. The amount of gains and the exemption has to be reported in the tax return filed in the financial year in which the asset was transferred. The tax return can be filed quarterly, monthly, semi-annually or annually.