Question
Suppose Concrete Suppliers Inc. sells one of its $155,000 concrete trucks, with an original five-year economic...
Suppose Concrete Suppliers Inc. sells one of its $155,000 concrete trucks, with an original five-year economic life, at the end of year 3 after taking three years of straight-line depreciation. Concrete Suppliers has a 40 percent tax rate. If the truck is sold for its book value, there is no tax effect. If Concrete Suppliers sells the truck for more or less than its book value, there is a gain or loss that has a tax effect.
a. Show the effects on cash flow in Year 3 if the sales price is $80,000.
Show the effects on cash flow in Year 3 if the sales price is $80,000.
|
b. Show the effects on cash flow in Year 3 if the sales price is $20,000.
|
Answers
ANSWER
Cost of Truck 155000 Divide: Life 5 Annual depreciation 31000 Accumulated dep 93000 (31000*3) Book value of Truck 62000 Req A: Cash proceeds of truck 80000 Book value 62000 Gain n sale of truck 18000 Tax @ 40% 7200 Net cash effect of sale 72800 (80000-7200) Req B: Cash proceeds of truck 20000 Book value 62000 Loss on sale of Truck 42000 tax shield @40% 16800 Net cash effect of sale 36800 _____________________________________________
If you have any query or any Explanation please ask me in the comment box, i am here to helps you.please give me positive rating.
*****************THANK YOU**************
Similar Solved Questions
1 answers
A teacher prepares a test
A teacher prepares a test. She gives 5 objective type questions out of which 4 have to be answered. Find the total ways in which they can be answered if the first 2 question have 3 chioce and the last 3 have 4 choices.I think this a permutation question need help...
1 answers
Help physics student
A car moving in a straight line starts at X=0 at t=0. It passesthe point x=25.0 m with a speed of 11.0 m/s at t=3.0 s. It passesthe point x=385 with a speedof 45.0 m/s at t=20.0 s. Find theaverage velocity and the average accelerationbetween t=3.0 s and20.0 s....
1 answers
Choose the correct answer please Question 8 In our notes, we saw a nice picture of...
choose the correct answer please Question 8 In our notes, we saw a nice picture of a Plagiochila, a close relative of mosses. The structure that produces its sperm must therefore be ain) a. capsule b.archegonium cantheridium d. sporangium e. rhizoid...
1 answers
Please type answers Family LEARNING CHECK True or false? Dr. Cohn argued that the family and...
please type answers Family LEARNING CHECK True or false? Dr. Cohn argued that the family and extended family are really economic units, with multiple wage earners and the house an equity source; therefore, the real unit of analysis is the "household". i. ii, According to Arlie Hochschild, th...
1 answers
462 526 You are given the following information. Durable good consumption Residential investment Imports Government expenditure...
462 526 You are given the following information. Durable good consumption Residential investment Imports Government expenditure Receipts of factor income from abroad 987 1259 45 Personal income 7863 Nonresidential investment 66 893 1056 7638 Nondurable goods Exports Services Depreciation Change in i...
1 answers
Use the following macroeconomic model structure to answer the questions followed. 8 pts C = 300...
Use the following macroeconomic model structure to answer the questions followed. 8 pts C = 300 + 0.8Yd; C = consumption function; Yd (Y-T) = disposable income I = 200; I = Investment G = 400; G = Government expenditure T = 200; T = Tax revenue Also assume that Yf = Full employment GDP (Potential GD...
1 answers
Sheila transfers to Poseidon Corporation $9,000 cash and machinery having an $11,000 basis and a $26,000...
Sheila transfers to Poseidon Corporation $9,000 cash and machinery having an $11,000 basis and a $26,000 FMV in exchange for 60 shares of Poseidon stock. The machinery was used in Sheila's business, originally cost Sheila $37,000, and is subject to a $21,000 liability...
1 answers
Analyze this distribution of income. Draw the Lorenz curve. Complete the Gini index. Calculate top income...
Analyze this distribution of income. Draw the Lorenz curve. Complete the Gini index. Calculate top income shares. Income groups Group members Group income 350 2,500 250 5,000 150 15,000 60,000 50 Sum...
1 answers
Compute the payback period for each of these two separate investments: A new operating system for...
Compute the payback period for each of these two separate investments: A new operating system for an existing machine is expected to cost $270,000 and have a useful life of five years. The system yields an incremental after-tax income of $77,884 each year after deducting its straight-line depreciati...
1 answers
An aqueous solution containing 8.16 g of lead(II) nitrate is added to an aqueous solution containing...
An aqueous solution containing 8.16 g of lead(II) nitrate is added to an aqueous solution containing 6.57 g of potassium chloride. Enter the balanced chemical equation for this reaction. Be sure to include all physical states. balanced chemical equation: Pb(NO3)2(aq) + 2 KCl(aq) + PbCl,(s) + 2 KNO3(...
1 answers
Match the substance to the correct label for the following reaction: H2CO3 (aq) + H2O (l) ⇔...
Match the substance to the correct label for the following reaction: H2CO3 (aq) + H2O (l) ⇔ H3O+(aq) + HCO3−(aq) Question 5 options: 1234 H2O 1234 H2CO3 1234 HCO3- 1234 H3O+ 1. Acid 2. Base 3. Conjugate acid 4. Conju...
1 answers
The temperature of 4.00 g of helium gas is increased at constant volume by 1.00 1)...
The temperature of 4.00 g of helium gas is increased at constant volume by 1.00 1) Using the same amount of heat, the temperature of what mass of hydrogen gas will increase at constant volume by 1.0 C? (Express your answer to three significant figures.) Submit...
1 answers
What is the sum of #3 1/6 + (-5.5)#, expressed as a mixed number in simplest form?
What is the sum of #3 1/6 + (-5.5)#, expressed as a mixed number in simplest form?...
1 answers
Ad Please save the fle by your registration number only. Submit it till 08.00pm today 14-7-2020....
Ad Please save the fle by your registration number only. Submit it till 08.00pm today 14-7-2020. Со or Si 1. Find the magnetic Field intensity at point P for the steady current configuration shown below: R...
1 answers
Our project will be a chess game. There will be 2 players and the game will...
Our project will be a chess game. There will be 2 players and the game will have a pause and start function. Each of chess characters will have its own correct moves for example, the pawn can only move forward and attack on angles not sraight. The game appearance will be 2 players, a board of 8 8, a...
1 answers
Carbon Oxide (CO) initially occupying 1.7 m3 at 8 bar, 246.85°C undergoes an internally reversible expansion...
Carbon Oxide (CO) initially occupying 1.7 m3 at 8 bar, 246.85°C undergoes an internally reversible expansion during which pV1.3 = constant to a final state where the temperature is 36.85°C. Assuming the ideal gas model, determine the entropy change, in Joules/K....
1 answers
Income statement data for Winthrop Company for two recent years ended December 31, are as follows:...
Income statement data for Winthrop Company for two recent years ended December 31, are as follows: Current Year Previous Year Sales $701,800 $580,000 Cost of goods sold 590,000 500,000 Gross profit $111,800 $80,000 Selling expense...