Juan DeBaptist purchased $10,000 in corporate stock on June 1 and sold the stock when its value reached $13,000 on October 26. Ignoring stock transaction fees, what federal taxes did Juan pay on this stock investment if his taxable income is $90,000? Assume a capital gains tax rate of 15%.
Q: A plant erected to manufacture socks has a first cost of P9,371,311 with a salvage value of x% of…
A: Disclaimer- “Since you have asked multiple question, we will solve the first three question for you…
Q: How are depreciation deductions different from other production or service expenses such as labor,…
A: Depreciation means a fall in the value of an asset/property considering the usage life. The wear…
Q: A gasoline engine has an annual depreciation of P13,000 for 15 years and salvage value of P20,000.…
A: Annual Cost of depreciation = 13,000 time period = 15 years Salvage Value = 20,000 Depreciation…
Q: Agricultural machinery is purchased by Henredon for $250,000. It is expected to last 12 years.…
A: since you have posted multiple subparts according to Bartleby guidelines we can only solve only 3…
Q: An equipment costing Php 250,000 has an estimated life of 15 years with a book value of php 30,000…
A: Equipment and machines lose value over time due to wear and tear. Depreciation refers to the loss in…
Q: Approximate the after-tax ROR on a project that had a first cost of $500,000, a salvage value of 20%…
A: Amount received after fifth year = (20% x 500000) + 230000 = 100000 + 230000 = 330000 Year…
Q: A manufacturing company purchased 10 years a milling machine for ₽60,000. A straight-line…
A: The correct answer is given in the second step .
Q: An industrial plant bought a generator set for P120, 000. Other expenses including installation…
A: The sum of years' digits technique is a type of accelerated depreciation expense that is based on…
Q: What is the depreciation deduction, using 200% DB method, after year 4 for an asset that costs…
A: Given The first cost of the asset (P) =67894 Salvage value (F)=7000 Life =7 years We have to…
Q: An investment of $1.000.000 will be included in the 7-year MACRS class for depreciation. It would…
A:
Q: When determining the present worth of the after-tax cash flows of an investment purchased using…
A: Answer - Need to find - When determining the present worth of the after-tax cash flows of an…
Q: Suppose that Adhvait's Plastic Pellet company has a depreciation rate of 0.075 and a marginal…
A: The marginal product of Capital: The marginal product of capital is defined as the amount of…
Q: A small manufacturing company has an estimated annual taxable income of $195,000. Due to an increase…
A: (a) 5 years MACRS depreciation rate in 1st year is 0.2 percent. Depreciation (D) of the machine…
Q: Lynn Construction Company had a gross income of $34,000,000 in tax-year 1,$5,000,000 in salaries,…
A:
Q: I need help in figuring out the step by step procedure, performing the operations and calculations…
A: EBITDA of old machine = $20,000 EBITDA of new machine = $40,000 Replacing the machine increases…
Q: Certain new machinery used in manufacturing of motor vehicles, when placed in service, is estimated…
A: Present Worth is defined as the method which is used to calculate future cashflows Given, Cost of…
Q: A factory equipment has an initial cost of P200,000,00. It salvage value after 10 years is…
A: The formula is: Depreciation =initial cost-salvage valueyears=20000000-200000010=1800000
Q: Last year, a company's gross income was $ 175,000, expenses (not including depreciation) were $…
A: Economics is a branch of social science that describes and analyzes the behaviors and decisions…
Q: Helical Products makes machined springs with elastic redundant elements so that a broken spring will…
A: Tax amount can be calculated as follows: Tax amount=Gross income-Expense+Depreciation×tax…
Q: Your firm is planning to install a new capping machine at the apple juice factory. This machine is…
A: Initial Cost = $500,000 Net Income = $150,000 for 4 years Salvage Value = $75,000 Federal tax rate =…
Q: Olivia’s asset is purchased for Php 25,000. Its estimated life is 12 years after which it will be…
A: Depreciation refers to the decrease in the value of asset overtime due to tear and wear of asset. In…
Q: B2B Co. is considering the purchase of equipment that would allow the company to add a new product…
A:
Q: Answer the following problems on clean sheets of paper. Show your solution. A company purchased a…
A: We have Machine cost = 15000 Sales tax and shipping cost = 1000 Nonrecurring installation cost =…
Q: A machine costing P540,000 has a life expectancy of 12 years with a salvage value of P40,000. Using…
A: Initial Cost=P540,000 Salvage Value=P40,000 N=12 years i=8% =.08
Q: Consider an asset that costs $690,000 and is depreciated straight-line to zero over its eight-year…
A: The measure that depicts the current stream of cash flows being discounted at a specified rate of…
Q: Certain new machinery used in manufacturing of motor vehicles, when placed in service, is estimated…
A: Present Worth is defined as the method which is used to calculate future decisions Cost of the New…
Q: In year 0 you purchase an asset for $500,000 and in year 1 you receive a positive cash flow of…
A:
Q: radio service panel truck initially costs P100T. Its resale value at the end of the fifth year is…
A: Declining Balance Method is also called the Constant-Percentage Method or the Matheson formula.
Q: The first coat of a road laying machine is Php 8,000,000. Its salvage value after five years is Php…
A:
Q: Using DBM(declining balance method), the depreciation of a machine on the 5th year and 7th year are…
A: We have given the depreciation of a machine in 5th year is P22,893 and in 7th year is 13,503 Let the…
Q: Hubert lives in Detroit and runs a business that sells pianos. In an average year, he receives…
A: Ans. Explicit cost is the cost a firm pays for the use of the factor of production during the…
Q: Determine the taxable income for a company that had gross income of $36.7 million, earnings before…
A: The gross income of the company is given to be $36.7 million. The gross income is the total income…
Q: In March 2021, Tamara Mines Co. purchased a coal mine for $6,000,000. Removable coal is estimated at…
A: Due to depletion, the amount of natural resources accessible will decrease over time. Depletion…
Q: A corporation in 2018 expects a gross income of $430,000, total operating expenses of $330,000, and…
A: The U.S. government personal expense is a duty required by the Internal Revenue Service (IRS) on the…
Q: Two proposals are being considered by a company for building a bottling plant. These are: Proposal…
A: Answer in step 2
Q: ach’s Corporation purchased a Jacquard machine for P6M, freight and installation charges amounted to…
A: Given the purchase price = P6M or 6000000 Installation charges = 3% of 6000000 = 180000 Years = 10…
Q: A P110,000 chemical plant had an estimated life of 6 years. and a projected scrap value of P10,000.…
A: cost = 110,000 life = 6 years scrap value = 10,000
Q: Weber Drilling Company is considering investing $20M in oil and gas drilling equipment. It is…
A: The present value of cash flows at the needed rate of return on your project relative to your…
Q: Certain new machinery used in manufacturing of motor vehicles, when placed in service, is estimated…
A: Present Worth is defined as the method that is used to calculate future cashflows Cost of New…
Q: CONSOL Energy purchased a new continuous miner to mine coal in one of their underground coal mines…
A: Depreciation of new continuous miner using MACRS is calculated below:
Q: It is desired to purchase a piece of equipment worth $77,000 that has a useful life of four years…
A: Depreciation is characterized as the decrease of the kept cost of a proper asset in an orderly way…
Q: The Philippine Society of Mechanical Engineers is planning to construct its own building. Two…
A: For Case (a):-P = 400,000 = PrincipalI = 20%Time = 5 yearsn = number of times compounding = 1∴ after…
Q: P 120,000,00. Its estimated life is 10 years, after
A: *Answer:
Q: A pumping station costs Php600,000 to construct, and it is projected to have a 20-year life with an…
A: Given First cost of pumping station P =Php600,000 Life of the pumping station (n)=20 years…
Q: A company purchased a machine for P15,000. It paid sales tax and shipping costs of 1,000 and…
A:
Q: This year, FCF Inc, has earnings before interest and taxes of $10,440,000, depreciation expenses of…
A: Introduction Free cash flow will help the company for her operating decisions. When a company…
Q: C. F. Jordon Management Services has operated for the last 26 years in a northern province where the…
A: An person or a corporation's effective tax rate is the percentage of their income that they pay in…
Juan DeBaptist purchased $10,000 in corporate stock on June 1 and sold the stock when its value reached $13,000 on October 26. Ignoring stock transaction fees, what federal taxes did Juan pay on this stock investment if his taxable income is $90,000? Assume a
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 2 images
- 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?Barbara Thompson is considering the purchase of a piece of business rental property containing stores and offices at a cost of $350,000. Barbara estimates that annual receipts from rentals will be $55,000 and that annual disbursements. other than income taxes, will be about $18,000. The property is expected to appreciate at the annual rate of 5%. Barbara expects to retain the property for 20 years once it is acquired. Then it will be depreciated on the basis of the 39-year real-property class (MACRS), assuming that the property would be placed in service on January 1. Barbara's marginal tax rate is 30%, and her MARR is 10%. What would be the minimum annual total of rental receipts that would make the investment break even?Omar Shipping Company bought a tugboat for $75,000 (year 0) and expected to use it for five years after which it will be sold for $12,000. Suppose the company estimates the following revenues and expenses from the tugboat investment for the first operating year: If the company pays taxes at the rate of 30% on its taxable income, what is the net income during the first year? (a) $28,700(b)$81,200(c) $78,400(d) $25,900
- When determining the present worth of the after-tax cash flows of an investment purchased using borrowed funds, which of the following are required? I. Principal and interest component for each loan payment II. Tax rate applied to the taxable income generated by the investment III. Depreciation deductions for the investment IV. Before-tax and loan cash flows for the investment V. MARR. a. I, III, IV, and V only b. II, III, IV, and V only c. IV and V only d. All items (I, II, III, IV, and V).During a particular year, a corporation has $18.6 million in revenue, $2.4 million of operating expenses, and depreciation expenses of $6.4 million. What is the approximate federal tax this corporation will have to pay for this tax year?Determine the taxable income for a company that had gross income of $36.7 million, earnings before interest and income taxes of $21.4 million, and depreciation of $9.5 million.
- 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%.A small manufacturing company has an estimated annual taxable income of $195,000. Due to an increase in business, the company is considering purchasing a new machine that will generate additional (before-tax) annual revenue of $80,000 over the next five years. The new machine requires an investment of $100,000, which will be depreciated under the five-year MACRS method.(a) What is the increment in income tax caused by the purchase of the new machine in tax year 1?(b) What is the incremental tax rate associated with the purchase of the new equipment in year 1?Suppose for some year the income of a small company is $110,000; the expenses are $65,000; the depreciation is $25,000; and the effective income tax rate = 40%. For this year, the ATCF is most nearly (a) −$8,900 (b) $4,700 (c) $13,200 (d) $29,700 (e) $37,000.
- 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.Assume $60,000 is going to be invested in each of the following assets, using table 12-11 and table 12-12 indicate the dollar amount of the first years depreciation a.office furniture b:automobile c.electric and gas utility property d.sewage treatment plantIncome taxes are calculated based on gross income less certain allowabledeductions. They are also assessed on gains resulting from the disposal of property. What is a 10-word or less definition appropriate for a corporation, based on Wikipedia, for each of the following factors? a. Gross income. b. Expenses. c. Depreciation. d. Interest. e. Property (e.g., equipment) disposition.