User Account

All Pages

What is the after tax cash flow from the sale of this asset

Assignment Help Financial Accounting
Reference no: EM133010424

Problem - Consider an asset that costs $311 000 and is depreciated straight-line to zero over its six-year tax life. The asset is to be used in a four-year project; at the end of the project, the asset can be sold for $58 000. If the relevant tax rate is 34%, what is the after tax cash flow from the sale of this asset?

A. $73 526.67

B. $68 411.19

C. $70 103.33

D. $40 466.67

Reference no: EM133010424

Questions Cloud

What is the company aftertax cost of debt : PWCV, Inc. has bonds outstanding that mature in 6 years, pay interest annually, What is the company's aftertax cost of debt if its tax rate is 18 percent?
Which project sholud company choose based on payback period : The cutoff period is 3 years. Which project sholud the company choose based on the payback period and discounted payback period?
Discuss the overall impact on audit risk : Based on the information provided: Discuss the overall impact on audit risk. Which specific component(s) of audit risk would be affected
How hull will record the acquisition cost of the land as : How Hull will record the acquisition cost of the land as? salvage value of bricks from the shed $120. filling and grading $1,500.removal of shed $300
What is the after tax cash flow from the sale of this asset : The asset can be sold for $58 000. If the relevant tax rate is 34%, what is the after tax cash flow from the sale of this asset
Draw a payoff diagram showing the value of the call : Draw a payoff diagram showing the value of the call at expiration as a function of the stock price at expiration. What will be the payoff of the call?
Calculate net present value of the investment opportunity : Calculate the net present value of the investment opportunity. (Negative amount should be indicated by a minus sign. Round intermediate calculations)
What is the value of ending inventory using full costing : In addition, the company has fixed selling and administrative costs of $151,600 per year. What is the value of ending inventory using full costing
Appraise the reasons why michelin is interested : Appraise the reasons why Michelin is interested in adopting a digital service platform (DSP) and Evaluate what are the values that Michelin's DSP provides

Reviews

Write a Review

Financial Accounting Questions & Answers

  Single direct-cost category-single indirect-cost category

Be Safe, Inc. manufactures car seats in its Dallas plant. Each car seat passes through the Assembly Dept and the Testing Dept. This problem focuses on the Assembly Dept. the process-costing system at Be Safe, Inc. has a single direct-cost category (d..

  Demonstrate the unrealized gain or loss on the investment

Demonstrate the unrealized gain or loss on the investment that should be reported at year end by All Good Company. If it is a loss, enter as a negative number.

  How would the company accountant record the transaction

Union Bay Transit sells 1 million shares of stock with no par value for $15 a share. How would the company's accountant record this transaction?

  How much is the cost of goods sold for iki company

How much is the cost of goods sold for 2019? Finished Goods $780,000 The allowance for inventory write-down for the finished goods as of December 31, 2018

  Which company did the stock market favor

At year-end, the price-earnings ratio of General Motors was 11.3, and the price-earnings ratio of Microsoft was 28.14. Which company did the stock market favor?

  Calculate david taxable income assuming is self-supporting

David, a single 18-year old taxpayer, Calculate David's taxable income assuming he is (a) self-supporting and (b) a dependent of his parents.

  Routines that use the computer to check the validity

Routines that use the computer to check the validity and accuracy of transaction data during input are sometimes referred to as

  What is the value of the federal tax credit to oscar

Claims the maximum permissible amount for purposes of the charitable donation tax credit, what is the value of the federal tax credit to Oscar for this year?

  Calculate the price of the bond using duration

Question - A fund manager is holding fixed-interest bonds with a face value of $4750000. Calculate the price of the bond using duration

  What is the NPV of this investment

Installing the new lighting system will cost $1.5 million, If the steel company has a cost of capital of 6%, what is the NPV of this investment

  Calculation of budgeted manufacturing overheadbroomfield

calculation of budgeted manufacturing overhead.broomfield company budgeted 8000000 of manufacturing overhead for the

  Prepare master budget for the three-month period ending

You have just been hired as a new management trainee by Earrings Unlimited, a distributor of earrings to various retail outlets located in shopping malls across the country. In the past, the company has done very little in the way of budgeting and at..

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