User Account

All Pages

What is the salvage value after tax for years

Assignment Help Financial Accounting
Reference no: EM132743237

Question - The PV of the cash outflows for leasing is $27,890.

A firm could buy the asset for $30,000 by borrowing the funds at 10 percent for three years. Interest will be paid annually and the entire loan repaid at maturity. The firm's tax rate is 20 percent.

If the firm does buy, maintenance will be $1,000 in year one and increase by $1,000 each year.

The estimated salvage value is $0, and depreciation will be $10,000 annually.

What is the salvage value after tax for YEARS 0, 1 , 2, 3?

Reference no: EM132743237

Questions Cloud

Find and determine the value of the bond : On 1/1/21, Anna Corp. issued 5 years bonds with a face value. Determine the value of the bond on 1/1/23 assuming the prevailing market rate increased to 16%.
Healthcare quality : Assume that you are a Quality Officer who is responsible for one of the state's largest healthcare organizations.
What are the names of the major courtroom players : What are the names of the major courtroom players? For instance, what is the prosecutor called? How many judges hear a case? What role they play?
Prepare the journal entry to record depreciation on december : How do Prepare the journal entry to record depreciation on December 31, 2019. (Credit account titles are automatically indented when amount is entered.)
What is the salvage value after tax for years : The estimated salvage value is $0, and depreciation will be $10,000 annually. What is the salvage value after tax for YEARS 0, 1 , 2, 3
Process improvement and lean services : Using Visio prepare a cause-and-effect diagram (fishbone diagram) for "Why customers could have long waits when they are getting coffee at Trader Bings.
Identify the steps required to investigate an outbreak : Identify the steps required to investigate an outbreak. How did these steps help in investigating the Oswego event? Include the relevant information needed.
What is the value of inventory as at October : Company B uses the periodic inventory system and performs an inventory count at the end of each month. What is the value of inventory as at October
What would you say are the clearest strengths : Share a link to a story in the news about non-violent resistance. Do you think this form of protest and social change is effective? What would you say are the.

Reviews

Write a Review

Financial Accounting Questions & Answers

  Uses two measures of activity

Stuchlik Catering uses two measures of activity, jobs and meals, in the cost formulas in its flexible budgets. The cost formula for catering supplies is $540 per month plus $66 per job plus $14 per meal. A typical job involves serving a number of mea..

  Ethical considerations in making subjective valuations

What are the ethical considerations in making subjective valuations of complex and exotic investments and such funds help assure investors that there will be adequate cash to pay the bonds at their maturity date.

  Should penn medical lease the equipment or borrow the money

Entire cost of the scanner at an interest rate of 5%. The after-tax cost of debt is 3%. Should Penn Medical lease the equipment or borrow the money?

  What is amount of factory overhead controllable variance

The standard factory overhead rate is $7.50 per machine hour ($6.20 for variable factory overhad and $1.30 for fixed overhead) based on 100% capacity of 80,000 machine hours. what is the amount of the factory overhead controllable variance?

  Will be able to meet goal at current saving rate and why

You are 20 years old and have completed your BBA and want to pursue. Will you be able to meet your goal at this current saving rate?

  Journalize the adjusting entry required for unearned

Journalize the adjusting entry required for unearned rent on December 31, 2018. Round your answers to the nearest dollar amount.

  Prepare a tabular summary to record all transactions

Prepare a tabular summary to record all transactions described on the above dates. Update depreciation on assets disposed of, where applicable.

  What is defined as the sum of the lease payments received

What is defined as the sum of the lease payments received by a lessor under a finance lease and any unguaranteed residual value accruing to the lessor?

  What are the monthly lease payments before tax

You are going to lease a new car. If you decide not to make a down payment, then what are the monthly lease payments? (before tax)

  What was the company inventory turnover ratio for the year

Inventory, December 31 125,000. What was the company's inventory turnover ratio for the year? (Round your answer to 1 decimal place.)

  Rex baker and ty farney are forming a partnership to which

rex baker and ty farney are forming a partnership to which baker will devote three-fourth time and farney will devote

  Red rock mines and distributes various types of rocks

Red Rock, Inc. mines and distributes various types of rocks. Most of the company's rock is sold to contractors who use the product in highway construction projects. Aracely Hudson, company president, believes that the company needs to advertise to in..

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