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- First cost of equipment = $200,000 Market value at the end of year 6 = $10,000 MACRS depreciation is used. The equipment is a 5-year property. Incremental income-tax rate for the company = 35% Year 0 1 2 3 4 5 6 BT-CF in $ -200K 60K 63K 66K 69K 72K 75K Market value = 10K The first-year after tax-cash flow is equal to _____________.Consider the following financial information for an engineer: Age: 25Status: Single, no childrenGross Income: $54,000 401k investment: $4000Residential status: RentingTotal eligible itemized deductions: $3000 for charitable donations What is the taxable income? (IF you need to use them, assume the standard deduction for single is $12000 and married is $24000).Omar Shipping Company bought a tugboat for $75,000 (year 0) and expectedto use it for five years after which it will be sold for $12,000. Suppose the companyestimates the following revenues and expenses from the tugboat investmentfor the first operating year:Operating revenue $200,000Operating expenses $8400Depreciation $4000 If the company pays taxes at the rate of 30% on its taxable income, what is the net income during the first year?
- Using the following information, calculate the Net Value Added at Factor Cost. Sales 25000 Excise Duty 5000 Depreciation 1000 Change in Stock -500 Intermediate Cost 7000 a. 11500 b. 10500 c. 12500 d. 11000I want these B/C; after tax analysis to be computedCalculate the value of GVAFC Given the following information:- Units of output sold = 2000 Price per unit = 20 Depreciation = 2000 Change in stock = -500 Intermediate cost = 15000 Subsidy = 3000
- 4. Last month, a company specializing in wind power plant design and engineering made a capital investment of $460,000 in physical simulation equipment that will be used for at least 5 years, then sold for approximately 30% of the first cost. By law, the assets are MACRS depreciated using a 3-year recovery period. By how much will the sale cause TI and taxes to change in year 5? The TI will increase by $ and the taxes will increase byEquipment Depreciation A new piece of equipment cost acompany $15,000. Each year, for tax purposes, the companydepreciates the value by 15%. What value should thecompany give the equipment after 5 years?LoTech Welding can purchase a machine for $175,000 and depreciate it as 5-yearMACRS property. Annual maintenance would be $9800, and its salvage value after8 years is $15,000. The machine can also be leased for $35,000 per year on an“all costs” inclusive lease (maintenance costs included). Lease payments are dueat the beginning of each year, and they are tax-deductible. The firm’s combinedtax rate for state and federal income taxes is 28%. If the firm’s after-tax interestrate is 22%, which alternative has the lower EAC and by how much?
- Question A An asset is sold to a non-connected party for R150 000. This asset was acquired two years ago for R225 000. The Tax value equates to R135 000. Calculate the amount (if any) to include in the gross income of the "person". IGNORE VAT. O a. R150 000 proceeds O b. R90 000 recoupment O c. R15 000 recoupment . Full explain this question and text typing work only We should answer our question within 2 hours takes more time then we will reduce Rating Dont ignore this line.First cost of equipment = $200,000Market value at the end of year 6 = $10,000MACRS depreciation is used. The equipment is a 5-year property.Incremental income-tax rate for the company = 35% Year 0 1 2 3 4 5 6 BT-CF (Before Tax Cash Flow) in $ -200K 60K 63K 66K 69K 72K 75KMarket value = 10K The Year 2 taxable income is equal to ________________. Group of answer choices -$1,000 $500 -$350 $400 $750 -$250Eng. Economics. Your small consulting company is evaluating a circuit board testingmachine. The device costs $35,000, and the maker estimates that itwill have a salvage value of $6,000 after 5 years of use. Determinethe annual depreciation.