User Account

All Pages

Receive a tax credit as a result of the sale

Assignment Help Finance Basics
Reference no: EM132481483

Allied Services is now at the end of the final year of a project. The equipment originally cost $45,000, of which 75% has been depreciated. The firm can sell the used equipment today for $12,000, and its tax rate is 40%. What is the equipment's after-tax salvage value for use in a capital budgeting analysis? (Note that if the equipment's final market value is less than its book value, the firm will receive a tax credit as a result of the sale.)

Reference no: EM132481483

Questions Cloud

Calculate the rate of return for year : Assume that each? year's return is equally probable and calculate the average return over this time period.
Prepare the financial section of the business plan : Prepare the financial section of the Business Plan. Use your imagination to create the marketing segment and the organization segment.
What would be component cost of the preferred stock : If a preferred stock selling for 95.1 percent of par that pays a 11.9 percent annual coupon. What would be component cost of the preferred stock?
Lane industries is considering the replacement : Lane Industries is considering the replacement of one of its machines. Several alternatives are under consideration.
Receive a tax credit as a result of the sale : Allied Services is now at the end of the final year of a project. The equipment originally cost $45,000, of which 75% has been depreciated.
Create financial statements that provided for year dec : T-account entries based on the Journal Entries and financial statements that provided for year Dec 2012 ? Because when transfer the information
Photoperiodic control of seasonal growth : Photoperiodic control of seasonal growth - What does the paper add to our knowledge of the field? Do the data support all of the authors' conclusions?
How much money will you have when you retire : Assuming that you earn a 10% return on your investment, compounded annually, how much money will you have when you retire?
Find the diluted earnings per share : Find the "diluted earnings per share". found "diluted earnings per common share", which was $3.5 million, so is that the same thing?

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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