Net cash flow from disposal

Assignment Help Accounting Basics
Reference no: EM13132570

The Eaton Company purchased a piece of equipment for $20,000. The equipment has a life of 4 years. At the end of the 4 years, the equipment is sold for $6,000 when the tax basis of the equipment is $4,500. Income tax rate is 35%. The net cash flow from disposal is ?

Reference no: EM13132570

Questions Cloud

Calculate the final temperature of the solution : Consider the dissolution of CaCl2.  CaCl2(s) Ca2+(aq) + 2 Cl-(aq) ΔH = -81.5 kJ A 13.2 g sample of CaCl2 is dissolved in 106 g of water, with both substances at 25.0°C.
Expanding sponaugle''s farm equipment to include a plant : As you touch on here, collaboration is all about using the strengths of each group member to the fullest while trying to avoid the weaknesses. Some people are better planners or organizers than they are creators. Others have strong computer skills bu..
What actions should the company take : It wasnt until the monthly payroll reports were sent to kens supervisor that the error was detected. Ken refused to return the four extra checks. What actions should the company take?
Find the mean lifetime of electrical device : Find the mean lifetime of this device? A electrical device consists of 4 identical components arranged so that the device functions if and only if all four components are working.
Net cash flow from disposal : At the end of the 4 years, the equipment is sold for $6,000 when the tax basis of the equipment is $4,500. Income tax rate is 35%. The net cash flow from disposal is ?
Calculate the issue price : On January 1, 2012, Water World issues $25 million of 6% bonds, due in 20 years, with interest payable semiannually on June 30 and December 31 each year.
How many grams of co2 would be generated : you have 19.16 g of CH4 and 22.13 g of O2. How many grams of CO2 would be generated, CH4 + 2 O2 --> CO2 +2 H2O
Write a letter to mentor about studies and its value : Write a letter to your mentor explaining why a study of rhetoric and rhetorical canon is valuable to you, a modern-day student of English Composition.
Binary operations-equivalence classes : Show that ~ is an equivalence on M and if a* deontes the equivalence class of a, let M* = {a*| a belongs to M} denote the set of all equivalence classes. Show that a*b* = (ab)* is a well-defined operation on M* deontes.

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much are total manufacturing costs for the period

How much are total manufacturing costs for the period?

  Calculate the effect of the adjustments

Calculate the ratios for 2014 as Gross Profit Margin B. Profit Margin, Return on Assets and Current Ratio - calculate the effect of each of the adjustments on the profit figure of $63,500 as shown in Michael's draft accounts.

  Earnings available for dividends

Cash of $2,000 had been set aside for the plant expansion. How much of retained earnings is available for dividends?

  Explain the advantages of a convertible bond

A Corporation is considering issuing a convertible bond. What is a convertible bond and the advantages of a convertible bond from the standpoint of 1) the bondholder and 2) the issuing corporation.

  Role of certified public accountants

Why are certified public accountants expected to maintain higher standards than society in general?

  Question regarding capital structure and dividend policy

Tapley Inc. currently has assets of $5 million, zero debt, is in the 40% federal-plus-state tax bracket, has a net income of $1 million, and pays out 40% of its earnings as dividends.

  Technical and accounting specific language

Prepare the report using highly technical and accounting specific language to show that you are qualified to give the presentation.

  Approximate real rate of interest

If treasury bills are currently paying 7 percent and the inflation rate is 3.8 percent, what is the approximate real rate of interest? The exact real rate?

  Equity and the balance in sloanes investment account

On January 1, 2007, Sloane Co. purchased 25% of Orr Corp.'s common stock; no goodwill resulted from the purchase. Sloane appropriately carries this investment at equity and the balance in Sloane's investment account was $720,000 at December 31, 20..

  Why would someone choose to use a perpetual

Why would someone choose to use a perpetual over a period inventory system, and vice versa?

  Which would be a non-fraudulent earnings management scheme

Which would be a non-fraudulent earnings management scheme?

  Compare the advantages of using the retail method

High-volume retailers generally use the retail method for valuing inventories Instead of the various cost methods. Identify and evaluate the conditions that may distort the results under the retail method.Compare the advantages of using the retail..

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