Net income will decrease by? Apex Corporation sold machinery for $57,000. Themachinery had an original cost of $135,000 andaccumulated depreciation of $62,000. Ignoring thetax effect, as a result of the sale: a. net incomewill increase by $57,000. b. net income willdecrease by $16,000. c. net income will increaseby $16,000. d. net income will decrease by $57,000.

Explanation of Original Cost: The original cost of the machinery is the amount that Apex Corporation…

Answered: Apex Corporation sold machinery for…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter14: Capital Structure Management In Practice

Section: Chapter Questions

Problem 2P

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A truck costs $82,000 when new and has accumulated depreciation of $70,000. Suppose Frank Towing exchanges the truck for a new truck. The new truck has a market value of $79,000, and Frank pays cash of $52,000. Assume the exchange has commercial substance. What is the result of this exchange? OA. No gain or loss OB. Gain of $15,000 OC. Gain of $67,000 OD. Loss of $15,000
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Question for Maroon Company: • HOW MUCH IS THE GAIN OR LOSS IF THE BLDG IS SOLD FOR P8MILLION ONE YEAR AFTER REVALUATION? • HOW MUCH IS THE BLANCE OF REVALUATION SURPLUS AFTER THE SALE? For Noypi Store, follow the requirement. (Choose from the choices and kindly provide a solution.)
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A publishing company wants to replace an old machine, which to date is totally depreciated. The new equipment will increase earnings before depreciation and taxes by $ 33,000 per year over its useful life, calculated at 9 years. Its price is $ 166,500 including installation costs. If the company pays taxes of 47% and its MARR is 11%, establish the convenience of replacement if depreciation is declared through: a.straight line method b.Method of the sum of the digits of the years.
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