Calculate Lopez Enterprises' gross profit at a CFAT of $2.5 million, $900,000 in expenses, $900,000 in depreciation costs, and a 26.4% effective tax rate
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Calculate Lopez Enterprises' gross profit at a CFAT of $2.5 million, $900,000 in expenses, $900,000 in
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- Concepcion Industries paid $308,000 in federal taxes last year. If business expenses and depreciation charges were $345,000, what were their gross sales for the year?In 2015, a firm has receipts of $8 million and expenses (excluding depreciation) of $4 million. Its depreciation for 2015 amounts to $2 million. If the effective income tax rate is 40%, what is this firm’s net operating income after taxes (NOPAT)?An asset with a cost of $100,000 and accumulated depreciation of $80,000 is sold for $8000.What is the amount of the gain or loss on disposal of the plant asset?
- What is the expected after-tax cash flow from selling a piece of equipment if Probst purchases the equipment today for $542,980.00, the tax rate is 34.3 percent, the equipment will be sold in 3 years for $103,000.00, and the equipment will be depreciated to $60,600.00 over 12 years using straight-line depreciation? $212,549.05 (plus or minus $10) $240,125.11 (plus or minus $10) $109,035.08 (plus or minus $10) -$41,878.05 (plus or minus $10) None of the above is within $10 of the correct answerOn its tax return at the end of the current year Webnet Inc. has $6 million of tax depreciation in excess of depreciation in its income statement. A disclosure note reveals that $1 million of the $6 million difference will reverse itself next year, and the remainder will reverse over the next 4 years. In the absence of other temporary differences, in the balance sheet at the end of the current year Webnet would report ?Borsberry Medical has a gross income of $6.7 million for the year. Depreciation and operating expenses total $5.5 million. The combined state and local tax rate is 7.6%. Borsberry’s president hopes to have a total of $2 million left after taxes. What reduction in operating expenses (OE) is necessary to realize this goal if the effective tax rate and depreciation are constant?
- How are depreciation deductions different from other production or service expenses such as labor, material, and electricity?PLEASE USE EXCEL AND SHOW FORMULAS Six years ago, a company purchased $30,000 of equipment. The equipment has just been sold for $5000. The equipment was depreciated using 50% bonus depreciation / 50% MACRS (using a 5-year recovery period). The actual savings due to the purchase of the equipment is shown below. The firm's MARR is 12% and it's tax rate is 25%. What is the after-tax present worth of the investment? Year 1 2 3 4 5 6 Savings 5000 6000 7000 7000 4000 3000What is the depreciation deduction, using 200% DB method, after year 4 for an asset that costs #67894 and has an estimated salvage value of $7,000 at the end of its 7-year useful life? Round your answer to 2 decimal places. Add your answer
- A tax- and duty-free importation of a 30hp sand mill (for paint manufacturing) cost 360,000. CIP Manila Bank charges, arrester, and brokerage cost 5,000. Foundation and installation cost were 25,000. Other incidental expenses amounted to 20,000. Salvage value of the mill is estimated to be 60,000 after 20 years. Determine the appraisal value of the mill using straight line method of depreciation at the end of 10 years. a.235,000b.450,000c. 342,000d. 125,900A corporate expects to receive $36,144 each year for 15 years if a particular project is undertaken. There will be an initial investment of $100,705. The expenses associated with the project are expected to be $7,740 per year. Assume straight-line depreciation, a 15-year useful life, and no salvage value. Use a combined state and federal 48% marginal tax rate, MARR of 8%, determine the project's after-tax net present worth.If PSK Engineering had a CFAT of $750,000, charged depreciation of $400,000, and had a Te of 36%, what was PSK’s CFBT?