What is the after tax salvage value of the old equipment

Assignment Help Accounting Basics
Reference no: EM132472337

Royal Dutch Petro (RDP) is considering a new equipment purchase that would replace some existing equipment. The old equipment has a Book Value (BV) of $367 thousand and RDP estimates that the equipment could be sold for ONLY $240 thousand.

Question 1: What is the After Tax Salvage Value (ATSV) of the old equipment that RDP should use in their capital budgeting analysis? Assume the tax rate = T= 35%. Answer to 2 decimal points, in units of thousands, thus 15,123 would be 15.12 .

Reference no: EM132472337

Questions Cloud

Provide the cost structure : Provide the cost structure. How to explain this situation - why A, B, C are profitable, and D is having minus profit. The same production technology
What mission co reports for the note payable : What Mission Co. reports for the note payable and related interest payable on its balance sheet at December 31, 2019, and on its income statement
Calculate and what is the npv of the project : You can purchase this project for $608k. If your firm's cost of capital (aka required rate of return) is 12.5%, what is the NPV of this project?
What would be willing to pay for the investment : The cash flows occur at the end of each year, then what is the MOST you would be willing to pay for this investment? Answer to 0 decimal places.
What is the after tax salvage value of the old equipment : Determine What is the After Tax Salvage Value (ATSV) of the old equipment that RDP should use in their capital budgeting analysis?
What rate of return would earn on the investment : You can purchase this project for $950,000. At this price, what rate of return would you earn on the investment (aka what is the internal rate of return)?
Compute the cost of goods sold for the first week of january : Compute the cost of goods sold for the first week of January assuming use of a periodic inventory system .Use your answer to part b as the ending inventory.
Compute latesha marginal or average and effective tax rates : Compute Latesha's taxable income and federal tax liability for 2018 (round to dollars). Compute Latesha's marginal, average, and effective tax rates.
Compute gross profit earned by the company : Warnerwoods Company uses a perpetual inventory system. Compute gross profit earned by the company for each of the four costing methods

Reviews

Write a Review

Accounting Basics Questions & Answers

  Problem 10-15 comprehensive variance analysis lo1 lo2 lo3

problem 10-15 comprehensive variance analysis lo1 lo2 lo3 helix company produces several products in its factory

  Complete the worksheet for goods manufactured and sold

Worksheet, Income Statements, and Schedule of Cost of Goods Manufactured and Sold

  What are receivables

What are receivables? What are the different types of receivables? How are receivables recorded? Give examples

  Determine the consolidation worksheet entries

Determine the consolidation worksheet entries in the following year, assuming the inventory is on-sold, and explain the adjustments on a line-by-line basis.

  Provide the journal entry for the dividend

On February 1, 2013, the company declares a 15% stock dividend. The market price of the stock is $11 at the time. Provide the journal entry for the dividend

  Provide at least two examples of each type of deduction

It has been suggested that tax policy favors deductions for AGI compared to itemized deductions (from AGI). Provide two examples of each type of deduction

  Provide three examples of management decisions which

write a 2-3 page paper that addresses the following topicsprovide three examples of management decisions that benefit

  Determine the amount of manufacturing overhead cost

Required: Determine the amount of manufacturing overhead cost that would have been applied to all jobs during the period

  Calculate the number of sweatshirts henry hoodies

Required - Calculate the number of sweatshirts Henry's Hoodies must sell to break even. Round your answer to the nearest whole number

  What amount of gain is recognized by mulberry corporation

What amount of gain or loss is recognized by Mulberry Corporation and by Anar with respect to the distribution of the land?

  Complete a vertical analysis for last years balance sheets

ACCT603 Corporate Accounting Assignment. Complete a vertical analysis for the last three years balance sheets and income statements

  What are the effects of the annuity of betty gross income

On July 1, 1998, when Betty was 65 years old, she purchased an annuity contract for $108,000. The annuity was to pay Betty $9,000 on June 30 each year for the remainder of her life. Betty died on March 31, 2011. What are the effects of the annuity..

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