Income tax is the amount paid as a tax to the federal government or state government. This tax is generally levied each year. To calculate: The rate of return after tax.

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Answer 1

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Chapter 12, Problem 21P

(a).

To determine

Introduction: Income tax is the amount paid as a tax to the federal government or state government. This tax is generally levied each year.

To calculate: The rate of return after tax.

(b).

To determine

The reason for different rate of return obtained.

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Given: Before -Tax Cash Flow (BT-CF) for Kal Tech Systems in 2012 for an equipment that will be depreciated using the SL method with salvage value of $10,000. Year 0 1 2 3 4 5 BT-CF -$120,000 32,000 32,000 32,000 32,000 32,000 Market value - $36,000 What is the after-tax return if the company is in the 34% income tax bracket? The incremental tax rate is 34%. Also, it is known that the before-tax return is 16.65% Group of answer choices 9.65% 11.29% 10.16% 10.99%

A company with a 34% marginal income tax rate is considering the purchase of a $75,000 piece of equipment that is classified as 3-year property in the MACRS depreciation schedule. The equipment will provide the following estimated benefits in Year 1-5. Year Before-Tax Cash Flow 0 −$75,000 1 $10,000 2 $25,000 3 $50,000 4 $15,000 If the company purchases the equipment, how much income tax will it owe in Year 3? Group of answer choices $13,223 $17,000 $25,500 No income tax is owed

An industrial plant bought a generator set for P120, 000. Other expenses including installation amounted to P10, 000. The generator is set to have a life of 15 years with a salvage value at the end of life of P8, 000. What is the depreciation charge during the 12th year by SYD method? a.) P 3, 105 b.) P 2, 620 c.) P 4, 067 d.) P 4, 784

Answer 2

Question

Chapter 12, Problem 21P

(a).

To determine

Introduction: Income tax is the amount paid as a tax to the federal government or state government. This tax is generally levied each year.

To calculate: The rate of return after tax.

(b).

To determine

The reason for different rate of return obtained.

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Answer 3

Question

Chapter 12, Problem 21P

(a).

To determine

Introduction: Income tax is the amount paid as a tax to the federal government or state government. This tax is generally levied each year.

To calculate: The rate of return after tax.

(b).

To determine

The reason for different rate of return obtained.

Expert Solution & Answer

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Answer 4

Question

Chapter 12, Problem 21P

(a).

To determine

Introduction: Income tax is the amount paid as a tax to the federal government or state government. This tax is generally levied each year.

To calculate: The rate of return after tax.

(b).

To determine

The reason for different rate of return obtained.

Expert Solution & Answer

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Check out a sample textbook solution

See solution

Answer 5

Chapter 12, Problem 21P

(a).

To determine

Introduction: Income tax is the amount paid as a tax to the federal government or state government. This tax is generally levied each year.

To calculate: The rate of return after tax.

(b).

To determine

The reason for different rate of return obtained.

Answer 6

Chapter 12, Problem 21P

(a).

To determine

Introduction: Income tax is the amount paid as a tax to the federal government or state government. This tax is generally levied each year.

To calculate: The rate of return after tax.

Answer 7

Chapter 12, Problem 21P

(a).

To determine

Introduction: Income tax is the amount paid as a tax to the federal government or state government. This tax is generally levied each year.

To calculate: The rate of return after tax.

Answer 8

(b).

To determine

The reason for different rate of return obtained.

Answer 9

(b).

To determine

The reason for different rate of return obtained.

Answer 10

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Answer 11

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Answer 12

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Answer 13

Ch. 12 - Prob. 1QTC Ch. 12 - Prob. 2QTC Ch. 12 - Prob. 3QTC Ch. 12 - Prob. 1P Ch. 12 - Prob. 2P Ch. 12 - Prob. 3P Ch. 12 - Prob. 4P Ch. 12 - Prob. 5P Ch. 12 - Prob. 6P Ch. 12 - Prob. 7P

Income tax is the amount paid as a tax to the federal government or state government. This tax is generally levied each year. To calculate: The rate of return after tax.

Solution Summary: The author explains that income tax is the amount paid as a tax to the federal government or state government.

Introduction: Income tax is the amount paid as a tax to the federal government or state government. This tax is generally levied each year.

To calculate: The rate of return after tax.

The reason for different rate of return obtained.

Want to see the full answer?

Chapter 12 Solutions

Income tax is the amount paid as a tax to the federal government or state government. This tax is generally levied each year. To calculate: The rate of return after tax.

Solution Summary: The author explains that income tax is the amount paid as a tax to the federal government or state government.

Introduction: Income tax is the amount paid as a tax to the federal government or state government. This tax is generally levied each year. To calculate: The rate of return after tax.

The reason for different rate of return obtained.

Want to see the full answer?

Chapter 12 Solutions

Introduction: Income tax is the amount paid as a tax to the federal government or state government. This tax is generally levied each year.

To calculate: The rate of return after tax.