Cowboy company wishes to sell a machine with a book value

Assignment Help Accounting Basics
Reference no: EM13570481

Cowboy Company wishes to sell a machine with a book value of $40,000. The income tax rate is 30%.The machine is sold for $50,000.
Required:

A)What is the net after-tax cash flow from the sale of the machine?

B)If the machine is sold for $20,000, what is the net after-tax cash flow from the sale of the machine?

Reference no: EM13570481

Questions Cloud

The green giant has a 5 perecnt profit margin and a 40 : the green giant has a 5 perecnt profit margin and a 40 percent dividend payout ration the total assest turnover is 1.40
Receivables turnover ratio for calendar year ended 12-31-11 : receivables turnover ratio for calendar year ended 12-31-11 137728319337511666321377283155019 8.9 times.average age of
Total costs were 76900 when 26000 units were produced and : total costs were 76900 when 26000 units were produced and 97500 when 39000 units were produced. use the high-low method
Carry-all plans to sell 1300 carriers next year and has : carry-all plans to sell 1300 carriers next year and has budgeted sales of 46000 and profits of 22000. variable costs
Cowboy company wishes to sell a machine with a book value : cowboy company wishes to sell a machine with a book value of 40000. the income tax rate is 30.the machine is sold for
The high growth companys last dividend was 150 the dividend : the high growth companys last dividend was 1.50. the dividend growth rate is expected to be constant at 30 for 3 years
Sopranos spaghetti factory issued 30-year bonds two years : sopranos spaghetti factory issued 30-year bonds two years ago at a coupon rate of 7.5 percent. if these bonds
Home depot and lowes are two companies in the same industry : home depot and lowes are two companies in the same industry. comparative data for two years are given belowhome
As required to complete course project 1 one must follow : as required to complete course project 1 one must follow the cycle that includes 10 steps to complete the accounting

Reviews

Write a Review

Accounting Basics Questions & Answers

  Common stock balance sheet disclosure

Common stock balance sheet disclosure

  The cash account in the general ledger shows a balance of

the cash account in the general ledger shows a balance of 90000 before reconciliation. the bank statement does not

  Sauders uses the step-down method of cost allocation and

sauders company has two service departments cafeteria and human resources and two production departments machining and

  Calculating productivity measures

A farmer grows two crops: lettuce and beans. The farmer uses three inputs: labor, seed and fertilizer. The past prices and the quantities of each are given in the following tables: Calculate productivity measures for last year and this year using p..

  In what sutation would these type of fund be used

Laws or regulations require activity cost of providing service including capital costs such as debt service to be recovered with fees and charges, rather than taxes.

  You recently joined the internal auditing department of

you recently joined the internal auditing department of marcus clothing corporation. as one of your firs assignments

  Straight-line method both to determine interest expense

One year from the issue date (July 1, 2012), the corporation exercised its call privilege and retired the bonds for $395,000. The corporation uses the straight-line method both to determine interest expense and to amortize debt issue costs.

  Compute the amount of federal transfer taxes

Howard died in 2014, in addition to his $8.5 million of certificates of deposit and investment property worth $4 million

  Discuss applicable sales, licensing

Makes recommendations for the company to minimize the threat of lawsuits relating to privacy protection, product liability, or intellectual property rights.

  Discuss the rationale underlying the design

Discuss the rationale underlying the design of the performance report you chose.

  Cost of borrowing

a. Calculate the after-tax cost of debt, assuming the debt remains outstanding until maturity. b. Calculate the after-tax cost of debt, assuming investors put the bond back to the firm at the end of the fifth year.

  Book value of purchase and accounting principles

The Baldwin Company has just purchased $39,660,000 of plant and equipment that has an estimated useful life of 15 years. Suppose at the end of 15 years this plant and equipment can be salvaged for $3,966,000 (1/10th of its original cost). What wil..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd