Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Question: Corporations in the United States are allowed to subtract depreciation allowances from their taxable income. The depreciation allowances are based on the purchase price of the capital; a corporation that buys a new capital good at time t can deduct fraction D(s ) of the purchase price from its taxable income at time t +s. Depreciation allowances often take the form of straight-line depreciation: D(s ) equals 1/T for s [0,T ], and equals 0 for s > T, where T is the tax life of the capital good.
(a) Assume straight-line depreciation. If the marginal corporate income tax rate is constant at τ and the interest rate is constant at i, by how much does purchasing a unit of capital at a price of PK reduce the present value of the firm's corporate tax liabilities as a function of T, τ, i, and PK ? Thus, what is the after-tax price of the capital good to the firm?
(b) Suppose that i = r +π, and that π increases with no change in r. How does this affect the after-tax price of the capital good to the firm?
Explain the major options available to a bank that is short of reserves. What determines which option a bank is likely to choose?
Explain, verbally and analytically using a 'Factor Specific' Model, why it is that owners of flexible factors are more likely to benefit form trade.
Why would the Fed choose to keep the funds rate away from equilibrium for extended periods of time? In view of the performance of the economy after.
gdp grew much at a much faster4.8 percent rate in the october-december quarter but analysts said that growth masked
"National Accounts" and then "National Income and Product Account Tables.
methamphetamine meth is an addictive synthetic drug made chiefly in small toxic labs stls in homes tents barns or hotel
What is the opportunity cost of the decision to take these benefits from staying in the apartment and dick and Jane know that the annual property tax rate is 1% of the property value
5. you are at the company convention and your ceo gives a rousing motivational speech about how the company wants its
The least squares line for the data since year 1400 is shown on the graph. Is the slope of the line positive or negative? What does this imply? Consider cooperation use (x) as a predictor of average payoff (y). Based on the scattergram, is there ..
it seems most everything we buy these days has the label made in china. china has become the second largest world
Do business firms operating in competitive markets have a strong incentive to serve the interest of consumers? Are “good intentions” necessary if individuals are going to engage in actions that are helpful to others? Discuss.
Identify recommendations to address these weaknesses/problems. What are the facilitators and barriers to the implementation of your recommendations?
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!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd