Annual tax cost of increase defficiency

Assignment Help Accounting Basics

Reference no: EM13258179

You own a restaurant and just negotiated a decrease in the cost of steaks by25 cents a steak. You normally sell 300,000 steak dinners ayear. Your business pays an average of 30 percent in income taxes. What is the annual tax cost of this increase defficiency?

(a) $22,500.

(b) $52,500.

(d) $210,000.

Reference no: EM13258179

Questions Cloud

The portion sizes differ between exchange lists : It can be difficult to learn because the portion sizes differ between exchange lists. Some find the plan restrictive because combination and special occasion foods are prohibited.

Design a square wave oscillator using an opamp amplifier : Design a square wave oscillator using an (ideal) operational amplifier. Verify your design with Spice-like software waveform. Specifications: peak value: ±5 V, frequency: 1000Hz, duty cycle: 50%.

Case study of kk company : KK Company bought the delivery truck for $62,000 on January 1, 2009. They installed the rear hydraulic lift for $8,000 and paid sales tax of the $3,000.

Different or similar results based on the static coefficient : Do you expect different or similar results based on the static coefficient of friction and dynamic coefficient of friction to measuring friction? which on do you think is more appropriate? Why?

Annual tax cost of increase defficiency : You own a restaurant and just negotiated a decrease in the cost of steaks by25 cents a steak. You normally sell 300,000 steak dinners ayear. Your business pays an average of 30 percent in income taxes. What is the annual tax cost of this increase ..

At an interest rate what is the present worth of the deal : A firm leases land from you for 15 years to build a warehouse. As payment you will own the building after 15 years estimated to be worth $400k however you must pay taxes and maintenance of $15k per year.

How can you benefit from the education at auc : How can you benefit from the education at AUC? The essay should be legibly handwritten in English or Arabic and should be 300-500 words in length?

Calculate the amount of dividend paid : In 2007, XYZ Company paid $45,000 of dividends to its stockholders. Calculate the amount of the $45,000 dividend paid in 2007 that was paid to common stockholders.

A commercial aircraft skin material having a density : Aluminum-lithium alloys have been developed by the aircraft industry to reduce the weight and improve the performance of its aircraft. A commercial aircraft skin material having a density of 2.55 g/cm^3 is desired.

User Account

All Pages