Eastern Corporation has $21,000,000 in equipment that has a 15 year class life. The equipment is 8 years old. Eastern is selling the equipment for $10,000,000. Eastern uses simplified straight line depreciation (zero salvage value) and has a marginal tax rate of 34%. What is the terminal cash flow?

Answers

Answer 1

Answer:

$9,932,000

Explanation:

Calculation for the terminal cash flow

First step is to calculate the Sales value

Sales value =21,000,000/15 years*7years

Sales value=9,800,000

Note 15 years -8 years will gives 7 years

Second Step is to calculate the tax amount

Using this formula

Tax amount=Book Value-Sales value

Let plug in the formula

Tax amount=10,000,000-9,800,000*(34%)

Tax amount=200,000*34%

Tax amount=68,000

Last step is to calculate the terminal cash flow

Using this formula

Terminal cash flow=Book value-Tax amount

Let plug in the formula

Terminal cash flow=10,000,000-68,000

Terminal cash flow=$9,932,000

Therefore the Terminal cash flow will be $9,932,000


Related Questions

When agent Tom meets with his sellers to explain his advertising plan, he should make sure the owners understand that:__________.a) Advertising a similar property can and does create interest in their property.b) He can’t afford to continue advertising if the ads he places fail to generate interest.c) There are only so many advertising dollars to go around.d) Most of the advertising budget is earmarked for low-priced homes.

Answers

Answer:

Advertising a similar property can and does create interest in their property

Explanation:

In real estate agents need to effectively market properties in order to sell to consumers.

One way of doing this is by creating awareness in a given market about a particular property type.

When interest in a type of property is created it generates interest that will lead to more sales.

In the given scenario when Tom meets with his sellers to explain his advertising plan, he should make sure the owners understand that to capture a market they need to advertise even products that are similar.

As interest grows it will create a demand for that type of property

The correct option is a.

The following information should be considered:

For selling a property to consumers it should be effectively marketed.This can be done by providing a detailed information related to the property.This will increase the interest of the consumer and will lead to increase in sales. So, When agent Tom meets with his sellers to explain his advertising plan, he would make sure that the owners understand that to increase the sales we must advertise even the products that are similar.

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Maria, a certified financial planner, must also be a licensed attorney to be appointed Trustee of a bankruptcy estate. A. True B. False

Answers

Answer: False

Explanation:

Bankruptcy Trustees are usually lawyers and this is why people think that they must always be lawyers but this is not the case.

The United States Trustee who is an officer of the Department of Justice and the one in charge of appointing Bankruptcy Trustees, can appoint a person other than a licensed attorney to be the representative of an estate for bankruptcy related matters (trustee) such as accountants or financial planners.

Which type of credit is used to lease a building?

Answers

Answer:

service credit

Explanation:

The features of Municipal bonds make them attractive to high income, _________ bracket investors. a) Low-tax b) Average-tax c) High-tax d) No-tax e) Extra-tax

Answers

Answer: c) High-tax

Explanation:

Municipal bonds are quite attractive because they offer returns that are free of Federal taxes which means that the return quoted on them is the after-tax return already.

For this reason their returns are usually less than corporate bond returns. Investors in high tax brackets will therefore be attracted to municipal bonds as it gives them a chance to get tax savings on amounts they would have paid as taxes.

For a given significance level, if the calculated value of the Durbin Watson statistic lies between the lower critical value and the upper critical value, _____.a. the hypothesis of no serial correlation is accepted b. the hypothesis of no serial correlation is rejected c. the test is inconclusive d. the hypothesis of heteroskedasticity is accepted

Answers

Answer:

c. the test is inconclusive

Explanation:

In statistic, Durbin-Watson statistic test is used for testing the auto correlation present in residual and regression analysis. Auto correlation means it works as lagged correlation between variable's current value and variable's past value. For a given significance level, if the calculated value of the Durbin Watson statistic lies between the lower critical value and the upper critical value the test is inconclusive.

Hassock Corp. produces woven wall hangings. It takes 2 hours of direct labor to produce a single wall hanging. Hassock’s standard labor cost is $12 per hour. During August, Hassock produced 19,000 units and used 38,140 hours of direct labor at a total cost of $454,680. What is Hassock’s labor efficiency variance for August?a. $2,989 favorable.
b. $3,000 unfavorable.
c. $3,000 favorable.
d. $5,989 favorable.
e. $2,989 unfavorable.

Answers

Answer:

the labor efficiency variance for August is $1,680 unfavorable

Explanation:

The computation of the labor efficiency variance is shown below:

Labor efficiency variance is

= (Standard hours - Actual hours) × Standard rate

where,

Standard hours is

= 19,000 units × 2

= 38,000 hours

Now

Labor efficiency variance is

= (38,000 - 38,140) × $12

= $1,680 unfavorable

Hence, the labor efficiency variance for August is $1,680 unfavorable

This is the answer and the same is not provided in the given options

An indifference curve shows the various bundles of goods that:_________ A. all cost the same amount of money. B. make the consumer equally happy. C. can be purchased on the open market. D. are overpriced.

Answers

Answer:

B. make the consumer equally happy.

Explanation:

An indifference curve can be defined as the graphical representation of two products (commodities) that gives a customer equal utility and satisfaction and as such making him or her indifferent about them as they are equally happy.

Hence, an indifference curve shows the various bundles of goods that make the consumer equally happy.

Trying to solve every problem on your own shows that you are responsible true or false

Answers

Answer:

True

Explanation:

What kind of question is this?

Answer:

I solve questions that I recognize

What are three major technology advancements that made it possible for Amazon to succeed in starting up the industry of online business?

Answers

Answer:

The internet. The introduction of Wi-FiThe introduction of websites

MJ Co. pays out 60% of its earnings as dividends. Its return on equity is 15%. What is the stable dividend growth rate for the firm?

Answers

Answer: 6%

Explanation:

MJ’s Payout ratio = 60%

Retention ratio will be:

= 1 - Payout ratio

= 1 - 60%

= 40%

Return on equity = 15%

Wethem calculate the stable dividend growth rate for the firm which will be:

= Retention Ratio × return on equity

= 40% × 15%

= 0.4 × 0.15

= 0.06

= 6%

Therefore, the stable dividend growth will be 6%

Find the future value one year from now of an $8,000 investment at a 3 percent annual compound interest rate. Also calculate the future value if the investment is made for two years.

Answers

Answer:

If investment is made for one year, Future value = $8240

If investment is made for two years, Future value = $8487.2

Explanation:

The future value of a cash flow can be calculated using the following formula,

Future value = Present value * (1+i)^t

Where,

i is the rate of interest t is the time period

As the interest rate is compounded annually, the future value after one year will be,

After one year

Future value = 8000 * (1+0.03)^1

Future value = $8240

After two year

Future value = 8000 * (1+0.03)^2

Future value = $8487.2

he principle of indemnity does not apply to Select one: a. health Insurance. b. home Insurance. c. life Insurance. d. auto Insurance. e. pet Insurance.

Answers

Answer:

c. life Insurance.

Explanation:

The principle of indemnity put an individual who is in loss into the same financial position as he was before the loss.

The insurers ensure such individual is immediately reinstated into his previous position. They do not give more than what was lost they give the exact thing that was insured and lost. Even if the sum insured is more than the actual value of the property or this would not entitle the insured to get more than the actual loss

Life insurance and body insurance is not under indemnity principal because life can not be valued the same way as property and it cannot be refunded. Also, body part loss cannot be restored back to its original position hence they do not come under the principle of indemnity.

Before protecting a worksheet to avoid people from editing the formulas, you must ________.

unlock the input cells
lock the input cells
unlock the formula cells
lock the formula cells

Answers

Answer:

Lock the Formulas Cells

Explanation:

Now, go to lock the selected cells with formulas. To do this, press Ctrl - 1 to open the Format Cells dialog again, switch to the Protection tab, and check the Locked checkbox. The locked option prevents the user from overwriting, deleting or changing the content of the cells.

In a single period system, the target ________ is the balancing point between shortage costs and excess costs.

Answers

Answer: service level

Explanation:

A single period inventory model typically occurs to the organizations that order one-time items. In this case, such organizations can only get the right quantity when they order once in order to prevent loss.

In a single period system, the target service level is the balancing point between shortage costs and excess costs.

Heather Green usually buys Heinz Catsup because she likes its taste. But this morning her local grocery was surprisingly out of Heinz, so she decided to buy another highly advertised brand that was on sale because she really needed it for her meal that night. For Heather, Heinz has probably achieved brand:____________a. preference.b. insistence.c. nonrecognition.d. rejection.e. extinction.

Answers

Answer:

a. preference

Explanation:

As in the question it is mentioned that the heather Green normally purchased heinz Catsup as she likes the taste but she decided to purchase another brand i.e. highly advertised also it was on sale and she really needs it

So here the Heinz achieved the preference as usually she purchased the Catsup product but sh purchased another product due to high advertisement

So the preference is shifted to another product

Therefore option a is correct

An account balance is:
A. The total of the credit side of the account.
B. The total of the debit side of the account.
C. The difference between the total debits and total credits for an account including the beginning balance.
D. Used to identify source documents.
E. Always a credit.

Answers

The correct answer is:

C. The difference between the total debits and total credits for an account including the beginning balance.

An account balance is the difference between the total debits and total credits for an account including the beginning balance. The correct option is (C).

What do you mean by the account balance?

The amount of money held in a financial institution, such as a savings or checking account, at any particular time is known as the account balance.

The net amount, which includes all debits and credits, is always the account balance.

An account balance that is negative indicates a net debt, such as when a checking account is overdrawn.

An account balance may also show an amount outstanding for financial accounts with recurring expenses, such a mortgage or an electric bill.

Therefore, an account balance is the difference between the total debits and total credits for an account including the beginning balance.

To know more about the account balance, visit:

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Pablo owns a record store. His total costs are $1.2 million per year, his variable costs are $750,000, and his fixed costs are $450,000 per year. Last year, Pablo sold 1,200 records. If Pablo sells 1,250 records this year (50 more than last year) and his average total cost increases to $1.28 million, we know that the: ________

a. average variable cost of selling records has decreased.
b. marginal cost of those 50 records is $80,000.
c. average fixed cost of selling records is unchanged.
d. marginal cost of those 50 records is $1.28 million.
e. average total cost of selling 1.250 records is $1,000.

Answers

Answer:

b. marginal cost of those 50 records is $80,000.

Explanation:

The computation is shown below:

The average cost of selling 1,200 records is

= $1,200,000 ÷ 1,200

= $1,000

Now

The average total cost of selling 1,250 records is

= $1,280,000 ÷ 1,250

= $1,024

Now for the extra 50 records, the marginal cost is

= $1,280,000 - $1,200,000

= $80,000

Hence, the correct option is b.

Howard Company has 10,000 shares of $200 par value, 6% cumulative preferred stock and 150,000 shares of $50 par value common stock. Howard declares and pays cash dividends amounting to $800,000. If no arrearage on the preferred stock exists, how much in total dividends is paid to each class of stock

Answers

Answer:

Dividend - Preferred stock = $120000

Dividend - Common stock = $680000

Explanation:

The amount of dividend that is paid to each class of stock can be calculated by first calculating the dividend payable to preferred stock. The amount of dividend on preferred stock is fixed and is paid before the common stockholders are paid. Thus, dividend on preferred stock per year is,

Dividend - Preferred stock = 10000 * 200 * 0.06 = $120000

Thus, out of $800000 cash dividends, $120000 will be paid on the cumulative preferred stock.

Remaining dividend = 800000 - 120000 = $680000

The remaining $680000 will be paid to the common stockholders.

A set of values based on desirable workplace characteristics that include accountability, dependability, initiative taking, and accomplishment is called:

Answers

Answer:

work ethic

Explanation:

The work ethic represents the belief in ourselves to do the hard work that surely gives the benefit in future. It could be done by your character and skills & abilities.

Also it involves various attributes like, accountability, dependability, achievements, etc

Therefore according to the given situation, the work ethic is the answer and the same is to be considered

hello guys my name is lonatho if u want help u can ask me any question

Answers

Explanation:

What is global warming

Stoneheart Group is expected to pay a dividend of $2.87 next year. The company's dividend growth rate is expected to be 4 percent indefinitely and investors require a return of 10.2 percent on the company's stock. What is the stock price?

Answers

Answer:

The share price = $46.29

Explanation:

The share price = Next year dividend / (Required return - Growth rate)

The share price = 2.87 / (0.102 - 0.04)

The share price = 2.87 / 0.062

The share price = 46.29032258064516

The share price = $46.29

The salvage value is not considered when using Modified Accelerated Cost Recovery System (MACRS) depreciation methods. A. True B. False

Answers

Answer:

A. True

Explanation:

The Modified Accelerated Cost Recovery System (MACRS) can be defined as a depreciation system that avails business owners or companies the ability and opportunity to recover or recoup the cost basis of physical assets that have experienced deterioration over a specific period of time.

Depreciation can be defined as the reduction of cost of a fixed asset systematically until the value of the asset becomes zero.

In the United States of America, the Modified Accelerated Cost Recovery System (MACRS) is used mainly for tax purposes because it gives room for faster depreciation of a physical asset in its first years or initial usage and reduces depreciation as it is being used over a long period of time.

The salvage value is not considered when using Modified Accelerated Cost Recovery System (MACRS) depreciation methods.

Samson purchased some equipment for $86,749 on March 15, 2017. He decided he did not need the equipment and sold it on March 10, 2018 for $82,000. The equipment was subject to depreciation of $16,851 for 2017 and 2018. What gain or loss will Samson recognize on the sale of the equipment?
A. $4,749 ordinary loss.
B. $12,102 ordinary gain.
C. $12,102 capital gain.
D. $4,749 capital loss.

Answers

$12,102 ordinary gain.

In examining the national income accounts of the closed economy of Nepotocracy you see that this year it had taxes of $100 billion, transfers of $20 billion, and government purchases of goods and services of $70 billion. You also notice that last year it had private saving of $70 billion and investment of $50 billion. In which year did Nepotocracy have a budget deficit of $20 billion? A. this year but not last year B. last year but not this year C. neither this year nor last year D. this year and last year

Answers

Answer: B. last year but not this year

Explanation:

Last Year

Private savings + Public savings = Investment

70 + Public = 50

Public saving = 50 - 70

= -$20 billion

Public saving refers to a budget surplus because it means that the Government gets to save the amount of its revenue that it did not spend.

If Public saving is negative then there was a BUDGET DEFICIT.

This year

Budget surplus (deficit) = Government Revenue - Expenditure and transfer payments

= 100 - 70 - 20

= $10 billion

This year has a budget surplus.

Bank One offered ​20-year certificate of deposit​ (CD) at ​4.85% interest compounded quarterly. On the same day on the​ Internet, First Bank offered ​20-year CD at 4.84​% compounded monthly. Find the APY for each CD. Which bank paid a higher​ APY?

Answers

Answer:

Which bank paid a higher​ APY?

First Bank pays a higher APY = 4.95%

Explanation:

the annual percentage yield is the effective annual rate earned by a deposit, so we can use that formula to answer this question

effective annual rate Bank One (APY) = (1 + 4.85%/4)⁴ - 1 = 1.04939 - 1 = 0.04939 = 4.94%

effective annual rate First Bank (APY) = (1 + 4.84%/12)¹² - 1 = 1.049488 - 1 = 0.049488 = 4.95%

Suppose your firm operates in a perfectly competitive market and decides to double its output. How does this affect the firm's marginal profit?A) Marginal revenue and marginal cos inerese B) Marginal revenue increases but marginal cost remain the same. C) Marginal cost may change but marginal revenue remains the same D) Marginal revenue and marginal cost decrease

Answers

Answer: C) Marginal cost may change but marginal revenue remains the same

Explanation:

In a perfect competition the price is set by the market which means that one individual firm cannot change the price. This means that the marginal revenue for everyone is the same. If your firm decided to double its output, total revenue might change but marginal revenue will remain the same.

The marginal cost may change as well because marginal cost is unique to firms so if your firm wants to double output, it might find that it will cost more or less to produce an additional unit of a good.

A bond has a Macaulay duration of 6.25 years. What will be the percentage change in the bond price if the yield to maturity increases from 6 percent to 6.4 percent?

Answers

Answer:

-0.0242

Explanation:

Percentage change in bond price = -6.25*(0.064 - 0.06) / 1 + (0.06/2)

= -6.25 * 0.004 / 1+0.03

= -6.25 * 0.004/1.03

= -0.0242

= -2.42

Thus, the percentage change in the bond price -2.42%



True or false? Managers generally face lesser uncertainty when many contextual forces impact an

industry and when these same forces are constantly changing.

Answers

Answer:

False

Explanation:

Managers encounter more "uncertainty when many contextual forces impact their industry and when these same forces are constantly changing" or evolving, from one period to the next.  The uncertainties should be embraced as a part of doing business.  The uncertainties underpin the risks that every business entity faces and the associated returns (losses) or rewards are based on the risk management efforts of managers.

______ is the process of evaluating a firm's credit policy to determine whether a shift in its customers' payment patterns has occurred.

Answers

Receivables monitoring

On January 15, 2021, James Company received a two-month, 4%, $7,000 note from Peter Long for the settlement of his open account. The entry by Jaymes Company on January 15, 2016 would include a:________

a. debit of $7,047 to Notes Receivable.
b. debit of $7,000 to Notes Receivable.
c. credit of $7.047 to Accounts Receivable.
d. credit of $7,000 to Notes Receivable,

Answers

Answer: b. debit of $7,000 to Notes Receivable.

Explanation:

James Company received a Note Receivable of $7,000 from Peter Long to settle the Receivable account so Notes Receivable will increase. As it is an asset, it will be debited when it increases so Note Receivable has to be debited $7,000.

Accounts Receivable will be credited with the same $7,000 indicate that the Receivables account has been settled by the Note.

The entry would include debit of $7,000 to Notes Receivable.

Here, James Company received a Note Receivable of $7,000 from Peter Long to settle the Receivable account, hence, the Notes Receivable will increase.

Since the Notes Receivable is an asset, it will be debited when it increases, thus, Note Receivable has to be debited with the amount of $7,000.

However, the Accounts Receivable will be credited with $7,000 to show that the Receivables account has been settled by the Note.

Hence, the Option B is correct because the entry by Jaymes Company on January 15, 2016 would include debit of $7,000 to Notes Receivable.

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