What is a modified accelerated cost recovery system(MACRS)? Speculate as to why this system is nowrequired for tax purposes.

Q: what is a potential with a temporary tax difference in design to increase demand

A:

Q: How to calculate the indexed cost base for capital gains tax

A: SOLUTION- CAPITAL GAIN TAX- IT IS A TYPE OF TAX APPLIED  TO THE PROFITS EARNED ON THE SALE OF AN…

Q: Explain Rehabilitation Investment Tax Credits?

A: Income Tax Expenses: The expenses which are related to the taxable income of the individuals and…

Q: How is the compressed adjusted present value (APV) model different from the Modigliani and Miller…

A: Here is the Answer:

Q: Will the existence of unused tax losses always lead to the recognition of a deferred tax assets?…

A: Deferred tax assets arising from the deductible temporary difference because of different treatment…

Q: The benefit of future deductible amounts can be achieved only if future income is sufficient to take…

A: Temporary Difference Temporary difference refers to the difference of one income recognized by the…

Q: Explain this statement: Our tax rates are progressive.

A: The tax rate that increases with increase in the amount of taxable income (positive relationship) is…

Q: profit after taxes will be produced

A: A rise in sales will cause a proportional rise in the variable costs. But, the fixed costs will…

Q: What is meant by “tax allocation within a period”? What is the justification for such practice?

A: Tax: Tax refers to a compulsory payment or a contribution to the state revenue, levied by the…

Q: Present a mathematical solution in order to express that how depreciation can effect tax liability…

A: There are different types of Depreciation method. They are: 1) Straight Line Method 2) Declining…

Q: xplain the benefit approach and ability to pay approach with tax equity. Which approach is…

A: Taxes are the payments made by the individuals and corporation on their earnings. It is a compulsory…

Q: What is the projecť's expected NPV if the tax is imposed? What is the project's expected NPV if the…

A: Net Present Value (NPV) is a method of capital budgeting used to evaluate various investment…

Q: Explain the main differences between tax evasion and tax avoidance and list the main actions taken…

A: Tax evasion is the use of illegal methods of concealing income or information from the IRS or other…

Q: How can we deal with Salvage value and gains tax:?

A: Depreciation: The term depreciation refers to the fall in the monetary value of assets due to its…

Q: What is  internal Rate of Return - Before Tax Cash Flow - BTIRR?  Please provide example.

A: Before tax IRR (BTIRR) is the IRR calculated on the before tax cash flows. Here, the before tax cash…

Q: Define tax loss carryback and carryforward

A: Tax or Taxes: Tax is an amount paid by the persons (individuals and business entities) to a…

Q: What is a deferred tax asset and how is the value created?

A: Deferred tax asset: When Income Tax Expense account is more than the Income Tax Payable account,…

Q: How do taxpayers determine whether they should deduct their itemized deductions or utilize the…

A: How do taxpayers determine whether they should deduct their itemized deductions or utilize the…

Q: Illustrate what is incremental tax rate?

A: Definition: Tax: Tax is the compulsory legal payment that is imposed by the government.…

Q: How can the Income-Tax Rate be used in Project Evaluation?

A: The income tax rate is used to determine the cash flow after tax. As cash flow after tax helps in…

Q: What is the after tax annul cost if the soldering machine?

A: Adco Company has a specialized  soldering machine which requires an annual maintenance of $ 5000 a…

Q: Describe the process of using the Income-Tax Rate in Project Evaluation?

A: The income tax rate is used to determine the cash flow after tax. As cash flow after tax helps in…

Q: What is the compressed adjusted present value(APV) model, and how does this differ from…

A: The sum of the net present value and the financial benefits calculated by other methods of…

Q: Does the benefit-cost analysis result in definite proof that the project would have little value to…

A: To prevent or reduce the pollution for evaluating the public policies the cost benefit analysis is…

Q: What is the Incremental (Marginal) Tax Rate in Project Evaluation?

A: Tax:   A tax is a compulsory charge or a levy imposed upon a taxpayer by a government organization…

Q: Describe Tax Depreciation Methods?

A: Depreciation is a non-cash expense for the company. The depreciation expenses is charged because the…

Q: Which of the following formulas can be used to represent targeted pretax profit, πB, as a function…

A: option 1 is correct  πB = πA/(1 - t)   πB = Pretax target profit   πA=Post tax profit  t=Tax rate

Q: Discuss how a sales tax is regressive.

A: 1. Regressive Tax - Regressive Tax is a tax on the amount which decreases subject to the amount…

Q: 1.How is cost recovery properly assessed that will account for tax benefit?

A: Disclaimer: “Since you have asked multiple questions, we will solve the first question for you. If…

Q: How can we use Replacement Analysis with Tax Considerations?

A: Using of replacement analysis with tax consideration help the investor in order to select the best…

Q: How can we determine the annual depreciation for tax purposes?

A: Depreciation Depreciation refers to a constant reduction in the cost of an asset. There are two ways…

Q: TRUE OR FALSE? If the carrying amount of a liability is higher than the tax base, the difference is…

A: The given statement is True...If the carrying amount of a liability is higher than the tax base, the…

Q: What is Tax Depreciation?

A: Depreciation: Depreciation is a method of reducing the capitalized cost of long-lived operating…

Q: ustification for the method of determining periodic deferred tax expense is based on the concept of?…

A: Solution: According to matching principal, If income is recognized in particular period, all…

Q: Using tax depreciation for tax purposes and straight-line depreciation for financial reporting, do…

A: Deferred tax liability is the amount of tax that is due for the period but not been paid. It arises…

Q: Briefly explain how tax loss carryback and carryforward procedureswork.

A: Loss carryback is a situation in which business is having operating loss in this year and it want to…

Q: Determine the real rate of return of this project on an after-tax basis?

A: The after-tax real rate of return is the net monetary benefit of speculation subsequent to modifying…

Q: What are the benefits of calculating depreciation differently for financial reports and for tax…

A: Depreciation means decline in the estimation of benefit inside its valuable life because of mileage…

Q: How to calculate the answer of Tax Allowable depreciation?

A: Depreciation is the deduction in the value of the asset which leads to deduction in the tax as it is…

Q: Will the existence of unused tax losses always lead to the recognition of a deferred tax assets?…

A: SOLUTION- DEFERRED TAX = IT REFERS TO EITHER A POSITIVE (ASSETS) OR NEGATIVE (LIABILITY) ENTRY ON…

Q: Discuss the potential advantages and disadvantages of implementing an internal business…

A: An internal business process measure, that is the total dollar amount of tax refund generated would…